Skyworks Solutions, Inc. (SWKS)

Skyworks makes radio-frequency chips for phones — the parts that connect a handset to the network.

Between the antenna and the processor sits a set of amplifiers and filters that determine call quality and battery drain. Each new generation of standards adds bands and therefore more such components per handset — that was the industry's source of growth.

The company's vulnerability is concentration: a substantial share of revenue comes from one very large phone manufacturer, and its decision to move some functions to in-house designs changes the position at once. The company is expanding automotive and industrial lines to reduce that dependence. Risks: the handset sales cycle and competition. The dividend is high.