Vishay Intertechnology's Dividend Outlook: Stable but Unsustainable

Vishay Intertechnology (NYSE:VSH) will pay a dividend of $0.10 on September 25th, with an annual payment of 2.7% of the current stock price, above the industry average. Despite not generating a profit or free cash flow, the company has a stable dividend history and a 5.2% annual growth rate since 2015. However, the dividend payout ratio is high and the company's EPS has declined by 11% over the past five years.

Vishay Intertechnology (NYSE:VSH) will pay a dividend of $0.10 per share on September 25, 2025, with an annual payment of $0.40, representing a 2.7% yield based on the current stock price. This dividend is above the industry average and reflects the company's stable dividend history, which has grown at an annual rate of 5.2% since 2015. Despite not generating a profit or free cash flow, Vishay Intertechnology has maintained a consistent dividend policy, attracting investors seeking income.

However, the company's financial performance has been mixed. Vishay Intertechnology reported a loss of $0.07 per share for the quarter, missing analyst expectations despite a 2.8% year-over-year revenue growth to $762.25 million. The company's earnings per share (EPS) have declined by 11% over the past five years, and the dividend payout ratio is currently -61.54%, indicating that the company is paying out more in dividends than it is earning in profits.

Institutional investors have shown interest in Vishay Intertechnology, with several large investors making changes to their positions in the stock. Northern Trust Corp reduced its stake by 1.3%, selling 22,008 shares and holding about 1.21% of the company, valued at approximately $26 million. Other investors, such as Summit Securities Group LLC, Penn Mutual Asset Management, American Century Companies Inc., Kovitz Investment Group Partners LLC, and Public Sector Pension Investment Board, also made significant changes to their holdings in the stock during the first quarter.

Analysts have been cautious about Vishay Intertechnology, with Wall Street Zen recently lowering its rating to "sell" due to the company's financial performance and high payout ratio. Despite the challenges, Vishay Intertechnology's stable dividend history and growth rate may continue to attract income-focused investors.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-northern-trust-corp-sells-22008-shares-of-vishay-intertechnology-inc-vsh-2025-09-01/