Applied Materials, Inc. Announces 15% Dividend Increase and $10 Billion Share Repurchase Authorization

Applied Materials announces a 15% quarterly dividend increase and new $10 billion share repurchase authorization, reflecting confident business outlook.

Quiver AI Summary

Applied Materials, Inc. has announced a 15-percent increase in its quarterly cash dividend, bringing it to $0.46 per share, marking eight consecutive years of dividend increases. The new dividend will be payable on June 12, 2025, to shareholders on record as of May 22, 2025. Additionally, the company has authorized a new $10 billion share repurchase program, complementing an existing authorization that had approximately $7.6 billion remaining. The CFO, Brice Hill, expressed confidence in the company’s business prospects and highlighted that Applied Materials has returned nearly 90 percent of its free cash flow to shareholders over the past decade. The press release includes forward-looking statements regarding future dividends and share repurchases, noting that these are subject to various risks and uncertainties.

Potential Positives

The Board of Directors approved a 15-percent increase in the quarterly cash dividend, demonstrating a commitment to returning value to shareholders.
This marks eight consecutive years of higher dividends, reinforcing the company’s stability and reliability in providing returns to investors.
A new share repurchase authorization of $10 billion reflects confidence in the company's future financial performance and enhances shareholder value by reducing the number of outstanding shares.
Over the past 10 fiscal years, the company has distributed nearly 90 percent of free cash flow to shareholders, showcasing strong cash generation and a shareholder-friendly approach.

Potential Negatives

The announcement of increased dividends and share repurchase might indicate a lack of investment in growth opportunities, raising concerns among stakeholders about future innovation and expansion.
The forward-looking statements indicate uncertainty regarding future financial performance, which could lead to skepticism among investors about the company’s ability to sustain its financial returns.
The reliance on historical cash flow distribution to shareholders may signal potential weaknesses in generating new revenue streams or addressing market challenges effectively.

FAQ

What is the new quarterly dividend amount for Applied Materials?

The new quarterly dividend amount is $0.46 per share, effective June 12, 2025.

How many consecutive years has Applied Materials increased its dividends?

Applied Materials has increased its dividends for eight consecutive years.

What is the total amount for the new share repurchase authorization?

The new share repurchase authorization allows for $10 billion in share buybacks.

Who commented on the confidence in the company’s business prospects?

Brice Hill, Senior Vice President and CFO, commented on the company's business prospects.

Where can investors find more financial information about Applied Materials?

Investors can find more financial information on Applied Materials' Investor Relations website at ir.appliedmaterials.com.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$AMAT Congressional Stock Trading

Members of Congress have traded $AMAT stock 7 times in the past 6 months. Of those trades, 5 have been purchases and 2 have been sales.

Here’s a breakdown of recent trading of $AMAT stock by members of Congress over the last 6 months:

SENATOR ASHLEY MOODY purchased up to $250,000 on 01/22.
REPRESENTATIVE MARJORIE TAYLOR GREENE has traded it 3 times. They made 3 purchases worth up to $45,000 on 12/24, 11/20, 10/04 and 0 sales.
SENATOR JOHN BOOZMAN sold up to $15,000 on 12/23.
SENATOR MARKWAYNE MULLIN purchased up to $50,000 on 12/11.
REPRESENTATIVE JONATHAN L. JACKSON sold up to $50,000 on 11/27.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

$AMAT Insider Trading Activity

$AMAT insiders have traded $AMAT stock on the open market 1 times in the past 6 months. Of those trades, 0 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $AMAT stock by insiders over the last 6 months:

ADAM SANDERS (Corp. Controller & CAO) sold 271 shares for an estimated $46,808

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$AMAT Hedge Fund Activity

We have seen 968 institutional investors add shares of $AMAT stock to their portfolio, and 1,208 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC removed 6,983,199 shares (-42.5%) from their portfolio in Q4 2024, for an estimated $1,135,677,653
CAPITAL INTERNATIONAL INVESTORS removed 5,196,869 shares (-24.9%) from their portfolio in Q4 2024, for an estimated $845,166,805
NUVEEN ASSET MANAGEMENT, LLC removed 2,542,308 shares (-31.3%) from their portfolio in Q4 2024, for an estimated $413,455,550
JPMORGAN CHASE & CO removed 2,390,135 shares (-44.6%) from their portfolio in Q4 2024, for an estimated $388,707,655
QUBE RESEARCH & TECHNOLOGIES LTD added 2,219,744 shares (+186.6%) to their portfolio in Q4 2024, for an estimated $360,996,966
CAPITAL WORLD INVESTORS removed 2,192,796 shares (-13.9%) from their portfolio in Q4 2024, for an estimated $356,614,413
GOLDMAN SACHS GROUP INC removed 2,071,108 shares (-24.1%) from their portfolio in Q4 2024, for an estimated $336,824,294

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

SANTA CLARA, Calif., March 10, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that its Board of Directors has approved a 15-percent increase in the quarterly cash dividend, marking eight consecutive years of higher dividends. The increase results in a quarterly dividend of $0.46 per share payable on June 12, 2025 to shareholders of record as of May 22, 2025.

The Board also approved a new share repurchase authorization enabling Applied to buy back an additional $10 billion of its shares over time. This supplements the previous authorization which had approximately $7.6 billion remaining at the end of the first quarter of fiscal 2025.

“Over the past 10 fiscal years, Applied Materials has distributed nearly 90 percent of free cash flow to shareholders,” said Brice Hill, Senior Vice President and CFO. “The dividend increase and new share repurchase authorization we are announcing today indicate our confidence in Applied’s business prospects and bolster our ability to distribute excess cash to shareholders in the coming years.”

Forward-Looking Statements
This press release may contain forward-looking statements, express or implied, regarding future rates of cash dividends, our share repurchase program, and our business prospects and ability to outperform the market. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. 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. The timing and amount of share repurchases will depend on market conditions, our other funding requirements and other considerations. Additional factors that could cause actual results to differ materially from those expressed or implied by such statements are described in our SEC filings, including our recent Forms 10-K, 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

Use of Non-GAAP Financial Measure
For reconciliation of the GAAP to non-GAAP financial measure related to free cash flow, see non-GAAP reconciliation materials on the Investor Relations website at ir.appliedmaterials.com .

About Applied Materials
Applied 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) 408.235.4676
Liz Morali (financial community) 408.986.7977