SANTA CLARA, Calif. - Applied Materials (NASDAQ:AMAT), Inc. has declared a quarterly cash dividend of $0.40 per share on its common stock, as confirmed by the company's Board of Directors. Shareholders on record as of November 21, 2024, will be eligible for the dividend, with the payment date scheduled for December 12, 2024.
This announcement follows a 25-percent increase in the dividend per share earlier this year in March, marking a rise from $0.32 to $0.40. Applied Materials has consistently increased its dividend per share annually over the past seven years, with a compound annual growth rate of about 15 percent over the past decade.
In addition to dividends, the company has actively returned capital to its shareholders through share repurchases. In the third quarter of fiscal 2024, Applied Materials distributed $1.19 billion to its shareholders through dividends and share buybacks. As of the end of that quarter, the company had approximately $10.3 billion remaining in its share repurchase authorization.
The future issuance of dividends remains at the discretion of the Board of Directors and will depend on various factors, including the company's financial health, operational results, capital needs, and broader business conditions. The Board will also consider whether the distribution of dividends aligns with the best interests of the shareholders.
Applied Materials, listed on NASDAQ:AMAT, is recognized as a leader in materials engineering solutions. The company plays a pivotal role in the production of new chips and advanced displays around the world. Their capabilities in modifying materials at the atomic level on an industrial scale enable the transformation of possibilities into reality, contributing to the advancement of technology.
This dividend declaration is a component of Applied Materials' capital allocation strategy and is based on the information provided in a press release statement by the company.
In other recent news, Applied Materials, a prominent player in the semiconductor industry, posted record revenues for the third quarter of fiscal year 2024, reporting a 5% year-over-year increase to $6.78 billion. This growth was observed across all business segments, with Semiconductor Systems witnessing a 5% YoY increase. The company anticipates Q4 revenue of $6.93 billion and non-GAAP EPS of $2.18, both up 3% YoY at the midpoint. Investment firms William Blair and KeyBanc Capital Markets have maintained their Market Perform and Sector Weight ratings respectively on Applied Materials' shares. TD Cowen also reaffirmed its confidence in the company, maintaining a Buy rating. These ratings come in light of the company's strong performance and the potential implications of market activities in China. The company's emphasis on materials science and engineering is expected to support technological advancements in various sectors. Applied Materials also forecasts mid-single to high-single digit growth in its Integrated Circuit, Advanced Packaging (NYSE:PKG), Sensors, and Electromechanical (ICAPS) segment in the coming years.
InvestingPro Insights
Applied Materials, Inc. (NASDAQ:AMAT) continues to reward shareholders with a robust dividend policy, as evidenced by the recent dividend announcement. The company's commitment to shareholder returns is further highlighted by the InvestingPro Tip that Applied Materials has raised its dividend for 6 consecutive years, demonstrating a stable and growing return to investors. Moreover, the company has maintained dividend payments for an impressive 20 consecutive years, showcasing its long-term reliability in providing shareholder value.
Looking at the InvestingPro Data, the company's market capitalization stands at a solid $150.85 billion, reflecting its significant presence in the industry. The Price/Earnings (P/E) Ratio is currently at 20.42, which indicates investor expectations of future earnings growth, although it is trading at a high P/E ratio relative to near-term earnings growth. The dividend yield, as of the latest data, is at 0.86%, which is attractive to income-focused investors, especially considering the 25% dividend growth in the last twelve months. Applied Materials' financial health is also notable, with liquid assets exceeding short-term obligations, suggesting a strong balance sheet.
For investors looking to delve deeper into Applied Materials' financials and future prospects, there are additional InvestingPro Tips available on https://www.investing.com/pro/AMAT. These tips include insights into the company's earnings revisions, industry standing, stock price volatility, and debt levels, among others, providing a comprehensive understanding of the company's position and potential investment opportunities.
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