SANTA CLARA, Calif. - Applied Materials (NASDAQ:AMAT), Inc. announced a significant increase in its quarterly cash dividend, underscoring the company's robust financial performance and optimistic outlook. The semiconductor equipment maker's Board of Directors has approved a 25% hike in the dividend, raising it from $0.32 to $0.40 per share.
The new dividend will be distributed on June 13, 2024, to shareholders who are on record as of May 23, 2024. This move marks the seventh year in a row that Applied Materials has increased its dividend.
Brice Hill, the company's Senior Vice President and CFO, expressed confidence in Applied Materials' ability to sustain profitable growth and strong free cash flow. He anticipates the firm will continue to surpass the semiconductor equipment market's performance and expects the services business to achieve double-digit growth, supporting a rising dividend.
Applied Materials has demonstrated a consistent commitment to enhancing shareholder value through its capital allocation strategy. The latest increase follows a pattern of dividend growth, including last year's 23.1% increase from $0.26 to $0.32 per share. Over the past decade, the company has achieved a 15% compound annual growth rate in the quarterly dividend paid per share.
The information in this article is based on a press release statement from Applied Materials.
InvestingPro Insights
Applied Materials, Inc. (NASDAQ:AMAT) has not only announced a significant dividend increase but also exhibits a strong performance in the market with a market capitalization of $170.8 billion. The company has been a consistent performer, with a track record of raising its dividend for six consecutive years, which aligns with the latest announcement of a 25% increase in its quarterly cash dividend. This dedication to shareholder returns is further emphasized by the fact that Applied Materials has maintained dividend payments for 20 consecutive years.
InvestingPro data highlights the company's P/E Ratio at 24.12, with a slight increase to 24.39 over the last twelve months as of Q1 2024. This figure suggests that the stock is trading at a high valuation relative to near-term earnings growth, which is an important consideration for investors looking at the stock's current price versus its earnings potential. Additionally, the company's strategic position as a prominent player in the Semiconductors & Semiconductor Equipment industry, combined with a strong return over the last year of 81.25%, signals a robust market performance that may interest potential investors.
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The press release from Applied Materials, coupled with these insights, paints a picture of a company with a strong financial foundation and a commitment to rewarding its shareholders. As the semiconductor industry continues to grow, Applied Materials' strategic moves and market performance make it a noteworthy company for investors to consider.
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