Analog Devices

Management has long targeted returning essentially all FCF to shareholders over time while reinvesting heavily in R&D and capacity. In the TTM through Q3 FY2025, ADI returned $3.47B (dividends ~$1.89B, repurchases ~$1.58B). The quarterly dividend stands at $0.99 per share.

The Maxim acquisition (closed 2021) delivered targeted cost synergies ($275M) and broader portfolio depth; integration has been absorbed while FCF remained robust. We monitor repurchase timing versus intrinsic value and stock-based compensation (SBC was $235M in the first nine months of FY2025), which is acceptable relative to FCF.

Capex has been elevated but focused on resilient internal capacity expansions, which we view as moat-accretive.).