Linear Technology Corp (NASDAQ:LLTC)

Nasdaq in maximums.

LLTC has the highest margin of all the analog chip makers and great total return & a yield of 3,2% a dividend that has been raised consistently. Growth will not be at the high rate of the '90s but it should outperform S&P in the next few years after underperforming in 2011/12.

12/17

Selling at 11 times 2012 earnings during 3q of 2011; 3.7% yield Sep 2011 from div that has increased 19 straight years and at 25% rate annually since 2006.

value screen

Why would'nt the following be a good enough reason for LLTC to be a buy...

"It's been a year, and Linear's shares have largely tracked the broader market. The stock remains cheap, the business is strong, and the investment opportunity arguably as solid as ever. How many high-margin analog chip businesses do you see trading for 15 times trailing earnings? Linear's closest rival, Maxim Integrated Products MXIM, fetches a trailing P/E ratio twice that wide."

http://www.fool.com/investing/general/2011/04/06/this-just-in-upgrades-and-downgrades.aspx

Who thinks an expanding PE unlikely for LLTC? Does anyone think it more likely MXIM' PE is more likely to contract? Did MXIM PE get ahead of LLTC because LLTC has more debt? I believe that debt was for a share buyback and it is rapidly being repaid, perhaps almost completely by years end. I think that accumulating some shares during the next 9 months is a good idea, in anticipation of LLTC being almost debt free at the start of next year at which point they may institute another share buyback or provide a significant dividend increase.

I am a novice at this so feedback is welcome

Uncanny ability to produce new technology.

BEST PE/ROE ratios

semi2011

Good One

I like a technology stock that pays a dividend while I wait for the stock price to go up. They also increase the dividend a little each year.

I lake the analog space in microchips. LLTC is the leader.

Profile
Linear Technology Corp.
1630 McCarthy Boulevard
Milpitas, CA 95035-7417
United States - Map
Phone: 408-432-1900
Fax: 408-434-0507
Website: www.linear.com

Details
Index Membership: S&P 500
S&P 1500 Super Comp
Nasdaq 100
Sector: Technology
Industry: Semiconductor - Specialized
Full Time Employees: 4,191

Business Summary
Linear Technology Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of linear integrated circuits worldwide. Its products include amplifiers, comparators, voltage references and regulators, monolithic filters, linear regulators, DC-DC converters, battery chargers, data converters, communications interface circuits, RF signal conditioning circuits, power over Ethernet controllers, DC/DC µModule power systems, and signal chain modules, as well as other products, such as buffers, battery monitors, motor controllers, hot swap circuits, and sample-and-hold devices and drivers that are used to limit and/or manipulate signals. The company?s products are used in various applications, including telecommunications, cellular telephones, networking products, notebook and desktop computers, computer peripherals, video/multimedia, industrial instrumentation, security monitoring devices, complex medical devices, automotive electronics, factory automation, process control, military, space and other harsh environment systems, and high-end consumer products, such as digital cameras and global positioning systems. It markets its products primarily to original equipment manufacturer customers directly, as well as through electronic distributors. The company was founded in 1981 and is based in Milpitas, California.

***All above information from YAHOO FINANCE***

Apple supplier.

Astonishing debt 2900% Debt to Equity!

Strong recovery from the Recession.

The demand for chips for all sorts of electronic devices will be increasing dramatically. Linear is well placed to take advantage of an improving economy.

Strong Divendends, growing market segment.

Great numbers all the way around!