Microchip Technology, MCHP has doubled during the time I have owned it. It paid a healthy and ever increasing dividend. MCHP was my first dividend machine. However, they did not pay a dividend in March and I believe this is due to the fact that they paid a double dividend in December. In other words the March dividend was paid in December along with the December dividend.
I believe the thinking was that if we income investors received the dividend in December and the government increased the tax on dividend in 2011, we received the benefit of a dividend paid early at a potentially lower tax.
Since, the tax rate on dividends did not change, they could have waited until March but did not and paid it in December. I like receiving the dividend early. I want to make sure I do not lose my terrific gain so I am placing a stop at 10% below the high.
If MCHP continues the dividend march and pays the dividend or even increases the dividend in June, I will take off the stop because MCHP has been a great dividend machine.
Very Truly Yours,
TheMoneyMadam