Applied Materials Goes Big – 15% Dividend Increase & $10B in Buybacks

• Applied Materials Inc. (AMAT) increased its quarterly dividend by 15% to $0.46 per share and authorized a new $10 billion share repurchase program, supplementing the $7.6 billion remaining from its prior authorization.
• Despite a $2.70 (1.73%) stock drop to $152.98 in early trading, the company’s moves reflect confidence in its future, having returned nearly 90% of free cash flow to shareholders over the past 10 fiscal years.

Applied Materials Inc. (AMAT), a $126.5 billion market cap semiconductor equipment maker, saw its shares drop $2.70, or 1.73%, to $152.98 in early trading on Monday. Despite this dip, the company announced moves that signal financial strength and shareholder focus. Its Board of Directors approved a 15-percent increase in the quarterly cash dividend, raising it to $0.46 per share, payable on June 12, 2025, to shareholders of record as of May 22, 2025. This marks eight straight years of dividend growth, reflecting a consistent commitment to investors.

The Board also authorized a new $10 billion share repurchase program, adding to the $7.6 billion remaining from the prior authorization at the end of the first quarter of fiscal 2025. This $17.6 billion total provides flexibility to buy back shares, potentially lifting earnings per share and signaling confidence in the stock’s value. Brice Hill, Senior Vice President and CFO, noted that over the past 10 fiscal years, Applied Materials has returned nearly 90 percent of free cash flow to shareholders. He added that the dividend increase and repurchase authorization underscore optimism about the company’s future and its ability to distribute excess cash.

Applied Materials’ role in the semiconductor industry, supplying equipment for chip production, positions it to benefit from ongoing tech demand. The $0.46 dividend and $10 billion buyback program suggest the company expects sustained growth, despite short-term stock pressure. The nearly 23% year-over-year decline may concern some, but the broader strategy – combining a higher dividend with significant repurchase capacity – aims to reward long-term investors. With $126-plus billion in market value and a track record of financial discipline, Applied Materials is reinforcing its appeal to shareholders, balancing industry leadership with substantial returns.

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