Applied Materials raises dividend by 15% and initiates buyback

Applied Materials has announced a 15% increase in its quarterly dividend, raising it from $0.40 to $0.46 per share. This change will take effect on June 12 for shareholders recorded by May 22. The company also introduced a $10 billion share buyback program, adding to the existing $7.6 billion plan. Despite a 40% drop in stock price since July 2024, Applied continues to report strong revenue and earnings growth. The recent dividend hike has increased the stock's yield to about 1.25%, its highest in some time. Analysts expect continued earnings growth, positioning Applied well for future dividend increases as it benefits from the growing semiconductor and AI markets.