Skyworks Solutions

Skyworks Solutions designs analog and mixed-signal semiconductors, chiefly radio-frequency chips used in smartphones and increasingly in connected devices, automotive and industrial applications. Its business is heavily exposed to the mobile handset cycle and to a small number of large customers, which makes revenue prone to swings. Skyworks has grown its dividend for over a decade and carries a relatively higher yield than many chipmakers, reflecting both a lower valuation and slower recent growth. Customer concentration and smartphone cyclicality add risk to the earnings that fund the payout. The profile blends a decent yield with meaningful sensitivity to the mobile market.