SANTA CLARA, Calif. - Applied Materials, Inc. (NASDAQ:AMAT), a leading provider of materials engineering solutions, has announced a quarterly cash dividend increase from $0.32 to $0.40 per share on its common stock. The dividend is scheduled to be paid on September 12, 2024, to stockholders of record as of August 22, 2024.
This latest increase reflects a 25% rise from the previous dividend, continuing the company's trend of annual dividend growth over the past seven years. Applied Materials has consistently raised its dividend per share, achieving a compound annual growth rate of 15% over the last decade.
In the second quarter of fiscal 2024, Applied Materials returned $1.09 billion to its shareholders through dividends and share repurchases. Additionally, the company reported that it has approximately $11.2 billion remaining in its share buyback authorization as of the end of the period.
The dividend is a central element of Applied Materials' capital allocation strategy. The company emphasizes that while it anticipates continuing to pay dividends in the future, any future dividends are at the discretion of the Board of Directors. The Board will base its decisions on the company's financial health, operational results, capital needs, business conditions, and other relevant factors.
Applied Materials is recognized as a key player in the semiconductor industry, providing the technology necessary for the production of advanced chips and displays. The company's expertise in modifying materials at the atomic level allows it to deliver solutions that enable technological advancements.
The information provided in this article is based on a press release statement from Applied Materials, Inc.
In other recent news, Applied Materials, a prominent player in the semiconductor equipment industry, has been the subject of various analyses by top-tier financial firms. The company has reported robust revenues and earnings per share for the April quarter, with figures reaching or surpassing the upper end of guidance
Its advanced packaging segment is expected to surge 70% year-over-year to $1.7 billion, and Gate-All-Around (GAA) technology is projected to generate over $2.5 billion in revenues in 2024, doubling to $5 billion by 2025.
In addition to these strong financial figures, analysts from several firms, including Citi, KeyBanc Capital Markets, B.Riley, and Stifel, have updated their stances on Applied Materials.
Citi raised its price target for the company's shares to $250, citing a strong demand outlook. KeyBanc maintained its Sector Weight rating on the company's stock, citing recovery. B.Riley increased the company's stock price target to $255, highlighting the company's future growth potential, and Stifel raised its price target for Applied Materials shares to $240, maintaining a Buy rating.
The company's management strategy focuses on capitalizing on the demand for leading-edge foundry/logic and DRAM technologies. Despite the anticipated decline in China's DRAM market and the company's dependence on China for ICAPS stability, the company is confident in its future growth, especially with the upcoming ramp-up of its GAA/AP/HBM technologies.
InvestingPro Insights
Applied Materials, Inc. (NASDAQ:AMAT) continues to demonstrate its commitment to shareholder value with its recent dividend increase, a testament to its sound financial management. In alignment with this, InvestingPro Tips highlight that Applied Materials has not only raised its dividend for 6 consecutive years but has also maintained dividend payments for an impressive 20 consecutive years. This consistent dividend growth is a clear indicator of the company's robust financial position and its ability to generate stable cash flows over time.
Analyzing the company's stock performance using real-time data from InvestingPro, we note that Applied Materials has a market capitalization of $196.77 billion, underscoring its significant presence in the semiconductor sector. The company's price-to-earnings (P/E) ratio stands at 27.07, reflecting investor confidence in its earnings capacity. Additionally, the company's gross profit margin for the last twelve months as of Q2 2024 is a healthy 47.18%, which suggests strong operational efficiency.
For investors looking to delve deeper into Applied Materials' financials and stock performance, there are 21 additional InvestingPro Tips available, offering a comprehensive analysis of the company's market position. These tips include insights into the company's earnings revisions, volatility, and valuation multiples, which can be crucial in making informed investment decisions. Interested readers can take advantage of an exclusive offer by using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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