Microchip Technology, (MCHP), a tech stock from our
High Dividend Stocks tables
has the second highest dividend yield, 5.13%, in the semiconductors sub-industry. Like most other chip companies, they’ve been hurt in the downturn, as evidenced by their falling revenue and income for the period ending 6/30/09.

However, better news may be in store for investors when the company reports on Nov. 4th. Barron’s recently reported that “channel checks and corporate booking trends suggest that chip companies will beat 3rd quarter estimates”.  Since chip companies have recently lagged the market, there should be some value in some of these stocks, such as MCHP.

MCHP looks good in Industry Comparisons, besting their peers in several key ratios:

MCHP has a low debt-to-equity load of 23%.

The net annualized yield for selling April 2010 $25.00 covered call options
on MHCP is approximately 19% NET, with MCHP’s price of $25.29 today.

MCHP also has 
put options available.  Just check our  Covered Put Tables
for the current annualized yield for selling puts on MHCP.

Value and Income investors looking for dividend paying stocks in the tech sector may want to follow MCHP’s earnings report in early November.

Disclosure: Author doesn’t own shares of MCHP.