Applied Materials, Inc. (NASDAQ:AMAT) Declares Dividend Increase - $0.53 Per Share

Key Points

• Applied Materials declared a quarterly dividend of $0.53 per share (annualized $1.84), payable June 11 to shareholders of record on May 21; this is a 15.2% increase from the prior $0.46 and implies a ~0.6% yield.
• The dividend appears sustainable: the company has raised its payout every year for the last eight years and carries a low payout ratio of about 18.2%, with analysts' EPS forecasts keeping the expected payout near 18.3%.
• Applied recently beat estimates with $2.38 EPS and $7.01B revenue for the quarter and set Q2 guidance of $2.44–$2.84 EPS, supporting its cash flow profile and dividend capacity.

Applied Materials, Inc. (NASDAQ:AMAT - Get Free Report) declared a quarterly dividend on Friday, March 13th. Shareholders of record on Thursday, May 21st will be given a dividend of 0.53 per share by the manufacturing equipment provider on Thursday, June 11th. This represents a c) annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Thursday, May 21st. This is a 15.2% increase from Applied Materials's previous quarterly dividend of $0.46.

Applied Materials has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 8 years. Applied Materials has a payout ratio of 18.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Applied Materials to earn $10.07 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 18.3%.

Applied Materials Stock Performance

Shares of AMAT traded up $4.26 during trading hours on Friday, hitting $341.53. The company had a trading volume of 5,329,715 shares, compared to its average volume of 7,961,025. The business has a fifty day moving average of $333.03 and a 200-day moving average of $260.55. The company has a quick ratio of 1.94, a current ratio of 2.71 and a debt-to-equity ratio of 0.30. The firm has a market cap of $271.04 billion, a price-to-earnings ratio of 34.96, a PEG ratio of 1.59 and a beta of 1.65. Applied Materials has a 12 month low of $123.74 and a 12 month high of $395.95.

Applied Materials (NASDAQ:AMAT - Get Free Report) last announced its earnings results on Thursday, February 12th. The manufacturing equipment provider reported $2.38 EPS for the quarter, topping the consensus estimate of $2.21 by $0.17. Applied Materials had a net margin of 27.78% and a return on equity of 37.52%. The business had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.88 billion. During the same quarter in the previous year, the firm posted $2.38 EPS. Applied Materials's revenue was down 2.1% compared to the same quarter last year. Applied Materials has set its Q2 2026 guidance at 2.440-2.840 EPS. Equities analysts anticipate that Applied Materials will post 9.38 EPS for the current fiscal year.

About Applied Materials

Applied Materials, Inc is a U.S.-based supplier of equipment, services and software used to manufacture semiconductor chips, flat panel displays and other advanced materials. Headquartered in Santa Clara, California, the company designs and sells capital equipment and related technologies that enable production of integrated circuits, display panels and materials used across the electronics supply chain.

Applied Materials' offerings include process equipment and factory software that support critical steps in device fabrication, such as deposition, etch, implantation, inspection and metrology, as well as systems for packaging and advanced heterogeneous integration.

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