Applied Materials Increases Cash Dividend by 23.1 Percent and Announces New $10 Billion Share Repurchase Authorization
March 13 2023 - 7:30AM
Applied Materials, Inc. today announced that its Board of Directors
has approved a 23.1-percent increase in the quarterly cash dividend
from $0.26 to $0.32 per share. The dividend is payable on June 15,
2023 to shareholders of record as of May 25, 2023.
The Board also approved a new share repurchase authorization
enabling Applied to buyback an additional $10 billion of its shares
over time. This supplements the previous authorization which had
$4.7 billion remaining at the end of the first quarter of fiscal
2023.
“The dividend increase, our largest in five years, and the new
share repurchase authorization reflect our positive long-term view
of the semiconductor market and our confidence in Applied’s
outsized growth opportunities driven by our technology leadership,
broad portfolio of differentiated products and strong customer
engagements,” said Gary Dickerson, President and CEO.
Applied has a long history of returning free cash flow to
shareholders. The company initiated its dividend program in 2005,
and over the past 10 years, Applied has increased the quarterly
dividend paid per share at an 11-percent compound annual growth
rate and reduced the number of shares outstanding by nearly 30
percent.
Brice Hill, Senior Vice President and CFO, added, “As the market
for semiconductors has grown and diversified – and our services
business has become larger and more subscription-based – Applied’s
revenue and profitability have become more predictable and
resilient. Given these trends, we believe our free cash flow will
continue to grow over time and can support increasing the dividend
at an accelerated rate and doubling the previous dividend per share
over the next several years.”
Forward-Looking StatementsThis press release
contains forward-looking statements, including those regarding our
current view of the semiconductor market, our growth opportunities,
our capital deployment strategy, our free cash flow and our ability
to increase the dividend at an accelerated rate, and other
statements that are not historical facts. These statements and
their underlying assumptions are subject to risks and uncertainties
and are not guarantees of future performance. Factors that could
cause actual results to differ materially from those expressed or
implied by such statements include, without limitation: the level
of demand for our products, our ability to meet customer demand,
and our suppliers' ability to meet our demand requirements;
financial, legal and reputational risks, and the risk of loss of
intellectual property, resulting from cybersecurity incidents
affecting us or our suppliers; global economic, political and
industry conditions, including rising inflation and interest rates;
the interpretation and implementation of new export regulations and
license requirements, and their impact on our ability to export
products and provide services to customers and on our results of
operations; global trade issues and changes in trade and export
license policies; our ability to obtain licenses or authorizations;
transportation interruptions and logistics constraints; the effects
of regional or global health epidemics, including the severity and
duration of COVID-19 and government imposed lockdowns and other
measures taken in response; consumer demand for electronic
products; the demand for semiconductors; customers’ technology and
capacity requirements; the introduction of new and innovative
technologies, and the timing of technology transitions; our ability
to develop, deliver and support new products and technologies; the
concentrated nature of our customer base; acquisitions,
investments and divestitures; changes in income tax laws; our
ability to expand our current markets, increase market share and
develop new markets; market acceptance of existing and newly
developed products; our ability to obtain and protect intellectual
property rights in key technologies; our ability to achieve the
objectives of operational and strategic initiatives, align our
resources and cost structure with business conditions, and attract,
motivate and retain key employees; the variability of operating
expenses and results among products and segments, and our ability
to accurately forecast future results, market conditions, customer
requirements and business needs; our ability to ensure compliance
with applicable law, rules and regulations; and other risks and
uncertainties described in our SEC filings, including our recent
Forms 10-Q and 8-K. While we expect to continue to pay dividends in
the future, the declaration of any future dividends or dividends at
any particular rate is subject to the discretion of the Board of
Directors and will depend on our financial condition, results of
operations, capital requirements, business conditions and other
factors, as well as a determination by the Board of Directors that
dividends are in the best interests of our stockholders. All
forward-looking statements are based on management’s current
estimates, projections and assumptions, and we assume no obligation
to update them.
About Applied MaterialsApplied Materials, Inc.
(Nasdaq: AMAT) is the leader in materials engineering solutions
used to produce virtually every new chip and advanced display in
the world. Our expertise in modifying materials at atomic levels
and on an industrial scale enables customers to transform
possibilities into reality. At Applied Materials, our innovations
make possible a better future. Learn more at
www.appliedmaterials.com.
Contact:Ricky Gradwohl (editorial/media)
408.235.4676Michael Sullivan (financial community) 408.986.7977
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Apr 2023 to Apr 2024