Microchip Technology produces semiconductors used in a wide variety of embedded control applications. Products include 8-bit, 16-bit and 32-bit microcontrollers; a broad range of linear, mixed-signal, power management, thermal management, radio frequency (RF), timing, safety, security, and wired and wireless connectivity devices; and memory devices including EEPROM, serial flash, parallel, and static random access memories (SRAM). Microchip has more than 2,800 microcontrollers in its product catalog, which are used in end products in the automotive, communications, computing, consumer, and industrial control markets.

Stocks were mixed on Tuesday morning as investors digested new earnings results. Stocks in the news today include Palantir Technologies (PLTR), which gained 25% since reporting a stellar fourth quarter. BP plc (BP) shares are up following an earnings beat and plans to boost share repurchasing by $1.75 billion. The 10-year Treasury declined to 4.11%. The S&P 500 was up less than 0.01% and the Dow rose 0.2%, while the Nasdaq was down 0.1%. Crude Oil traded at $73 per barrel and gold was up $10 to $2053 per ounce.

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Dividend income is often overlooked amid gyrations in the stock market. But dividends are an important element of return. Dividend income accounted for 42% of the total return of the S&P 500 between 1930 and 2012, according to Hartford Funds. And that's just the average. In some of those decades, dividends accounted for more than 50% of total returns and even 100% of returns. More recently, dividends have accounted for a smaller portion of returns, at around 15%-20%. Not all dividends are created equal, though, and it is important to understand the difference between the two main categories: high-yield stocks and dividend-growth stocks. High-yield stocks typically have dividends that pay out in the 5%-8% range. Though the income appears attractive, the share prices of high-yield stocks may be at risk. Dividend-growth stocks typically have lower yields, often in the 1.0%-2.5% range. But the lower-yielding dividends are not likely to be a huge component of cash flow, leaving management teams with other value-additive options for deploying cash. Further, while the yields are not as high, management teams may be more likely to boost the payouts over time, as earnings grow.