Covered and real, but stalled. A 1.73% yield on a 34.61% trailing payout is covered with room to spare: $1.014 a quarter from an automotive and industrial chip leader. But the dividend has not moved since it was raised from $0.845 in late 2022 — nearly four years flat — so this card pays real income that is not currently compounding.
Key risk: Auto and industrial chip cyclicality — NXP's largest markets are automotive and industrial, so a vehicle-production or factory slowdown hits orders, and China exposure adds tariff and export-control risk.
Changes if: The dividend stays flat through 2027, or the trailing payout pushes past 50%. A raise would restore the compounding case; a flat fifth year would end it.
- ✓Payout-coverage check: 34.61% trailing payout ratio — covered, with about two-thirds of earnings retained.
- ✓Yield check: 1.73% indicated — $1.014/qtr × 4 at the $234.92 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- !Dividend growth check: Flat since late 2022: $1.014 a quarter, unchanged since the raise from $0.845 — no increase in nearly four years.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.