Power Integrations Announces Quarterly Dividend Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
0mins
Should l Buy POWI?
Source: seekingalpha
- Dividend Increase: Power Integrations has declared a quarterly dividend of $0.215 per share, marking a 2.4% increase from the previous dividend of $0.210, which indicates the company's ongoing improvement in cash flow and profitability, thereby boosting investor confidence.
- Yield Metrics: The forward yield of 1.82% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, which could further enhance shareholder value.
- Payment Schedule: The dividend is payable on March 31, with a record date of February 27 and an ex-dividend date also set for February 27, ensuring that eligible shareholders receive their earnings promptly, thereby strengthening the trust relationship between the company and its investors.
- Restructuring Focus: While Power Integrations is reducing its workforce by 7% to focus on cost control, it remains committed to industrial growth, demonstrating its strategic determination to optimize operations and enhance efficiency.
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Analyst Views on POWI
Wall Street analysts forecast POWI stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 50.240
Low
46.00
Averages
50.50
High
56.00
Current: 50.240
Low
46.00
Averages
50.50
High
56.00
About POWI
Power Integrations, Inc. designs, develops and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. The Company’s products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. Its ICs used in AC-DC power supply convert high-voltage AC from a wall outlet to the low-voltage DC required by electronic devices. It offers a range of products, such asTOPSwitch, TinySwitch, LinkSwitch, DPA-Switch, EcoSmart, Hiper, Qspeed, InnoSwitch, BridgeSwitch, SCALE, SCALE-II, SCALE-III, SCALE-iDriver, PeakSwitch, CAPZero, SENZero, ChiPhy, FluxLink, CONCEPT, PI Expert and Motor-Expert. It also offers automotive-qualified versions of certain products, such as InnoSwitch ICs, for use in electric vehicles (EVs). Its portfolio of power-conversion products generally addresses power supplies up to about 500 watts of output.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Dividend Yield Expectation: Power Integrations Inc. has a recent dividend yield of 1.8%, based on historical profitability fluctuations, indicating that the sustainability of future dividends remains uncertain, particularly in light of earnings volatility.
- Historical Volatility Analysis: With a trailing twelve-month volatility of 54% calculated from the last 251 trading days, this high volatility may affect investors' risk assessments, especially when considering selling covered calls at the $55 strike price.
- Options Trading Dynamics: As of Tuesday afternoon, the put volume among S&P 500 components reached 871,581 contracts, while call volume stood at 1.67 million, resulting in a put:call ratio of 0.52, indicating a preference for calls among investors, which may reflect optimism about stock price increases.
- Options Market Trends: The current high call volume, compared to the long-term median put:call ratio of 0.65, suggests that investors are leaning towards bullish positions in options trading, potentially influencing future market trends and investment strategies.
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- Transaction Overview: Former CEO Balu Balakrishnan reported the indirect sale of 11,363 shares on February 9 and 10, 2026, for approximately $532,000, indicating his ongoing activity in the company's stock market transactions.
- Holding Proportion Analysis: This sale represented 1.93% of his indirect holdings, leaving him with 576,256 shares post-transaction, suggesting sustained confidence in the company's future while maintaining shares through a trust structure.
- Price Comparison to Market: The weighted average sale price of $46.82 per share was only 2.5% above the market close of $45.66 on February 10, 2026, reflecting that the transaction price was closely aligned with prevailing market levels.
- Company Outlook: Despite a 2% year-over-year decline in fourth-quarter sales to $103.2 million, CEO Jen Lloyd noted that macro trends like AI data centers and electrification will drive demand, suggesting that investors might consider increasing their positions at current price levels for long-term growth potential.
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- Stock Sale Details: Board member Balu Balakrishnan sold 11,363 shares indirectly via a trust on February 9 and 10, 2026, for approximately $532,000 at an average price of $46.82 per share, representing 1.93% of his total indirect holdings.
- Holding Changes: Following this transaction, Balakrishnan's indirect holdings decreased from 587,619 to 576,256 shares, indicating consistency in routine portfolio management without signaling any negative implications for the company's fundamentals.
- Company Performance Overview: Power Integrations reported a 2% year-over-year decline in fourth-quarter sales to $103.2 million, with Q1 revenue forecasted between $104 million and $109 million, potentially falling short of last year's $105.5 million if it hits the lower end.
- Market Outlook Analysis: Although the stock price is significantly below the 52-week high of $68.20, CEO Jen Lloyd noted that the addressable market continues to expand due to macro trends like AI data centers and electrification, suggesting long-term growth potential remains intact.
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- Dividend Increase: Power Integrations has declared a quarterly dividend of $0.215 per share, marking a 2.4% increase from the previous dividend of $0.210, which indicates the company's ongoing improvement in cash flow and profitability, thereby boosting investor confidence.
- Yield Metrics: The forward yield of 1.82% reflects the company's attractiveness in the current market environment, potentially drawing in more investors seeking stable returns, which could further enhance shareholder value.
- Payment Schedule: The dividend is payable on March 31, with a record date of February 27 and an ex-dividend date also set for February 27, ensuring that eligible shareholders receive their earnings promptly, thereby strengthening the trust relationship between the company and its investors.
- Restructuring Focus: While Power Integrations is reducing its workforce by 7% to focus on cost control, it remains committed to industrial growth, demonstrating its strategic determination to optimize operations and enhance efficiency.
See More
- Financial Overview: Power Integrations reported Q4 2025 revenue of $103 million and non-GAAP EPS of $0.23, reflecting a 13% decline from the previous quarter, yet overall performance met expectations, demonstrating resilience amid market challenges.
- Restructuring and Cost Control: The company announced a 7% global workforce reduction to better align expenses with revenue, aiming to create flexibility for investments in products, people, and markets to generate long-term shareholder value.
- Market Outlook and Challenges: While improved bookings in industrial markets are expected to make it the fastest-growing segment in 2026, consumer demand continues to face headwinds from low existing home sales in the U.S., tariff impacts, and ongoing softness in the Chinese housing market.
- Strategic Investments and Future Planning: Strategic investments in high-power, automotive, and AI data center applications are seen as key to long-term value creation, although management maintains a cautious approach to 2026 investments, emphasizing operational discipline until demand clarity is achieved.
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- Earnings Announcement Date: Power Integrations is set to release its Q4 earnings on February 5 after market close, with a consensus EPS estimate of $0.19, reflecting a significant year-over-year decline of 36.7%, indicating potential market challenges ahead.
- Revenue Expectations: The consensus revenue estimate stands at $103.02 million, down 2.1% year-over-year, suggesting that Power Integrations may face headwinds in maintaining growth in a competitive semiconductor landscape.
- Historical Performance: Over the past two years, Power Integrations has exceeded EPS estimates 100% of the time and revenue estimates 88% of the time, demonstrating a track record of financial reliability and stability.
- Market Sentiment: Despite the challenges, Susquehanna holds a bullish outlook on semiconductor stocks, which could positively influence Power Integrations' stock price, especially in the lead-up to the upcoming earnings report.
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