Applied Materials Raises Quarterly Dividend 15.2% to $0.53

Applied Materials raised its quarterly dividend 15.2% to $0.53 a share from $0.46. The higher rate first traded ex-dividend on May 21, 2026, and the next ex-dividend date is November 19, 2026. The new annual dividend is $2.12 per share.

Why the dividend changed

Applied presented the increase as a regular capital-allocation decision, not an adjustment related to a split, merger or spin-off. The board’s dividend declaration described the payment as a key part of a strategy that balances investment in the business with cash returns to shareholders.

Chief Financial Officer Brice Hill linked the increase to Applied’s ability to generate cash while continuing to invest for profitable growth. The company’s allocation framework puts research, development and infrastructure first, followed by dividend growth and share repurchases as methods of distributing excess free cash flow, according to its fiscal third-quarter presentation.

Operating results after the declaration provide context for that decision. Applied reported fiscal third-quarter revenue of $9.12 billion, up 25% from a year earlier, and record operating cash flow of $3.04 billion. Management attributed the expansion to demand associated with artificial-intelligence infrastructure, including spending on leading-edge logic, DRAM and advanced packaging. The company guided for fiscal fourth-quarter revenue of $10.25 billion, plus or minus $500 million, and non-GAAP earnings of $4.02 a share, plus or minus $0.20, in its latest quarterly results.

Dividend track record

The payment history shows a stepped pattern of increases. Applied paid $0.40 on the November 21, 2024, and February 20, 2025, ex-dividend dates. The rate moved to $0.46 beginning with May 22, 2025, remained there through February 19, 2026, and then increased to $0.53 for the May 21 and August 20 ex-dividend dates.

Full-year dividend totals have risen steadily. The annual amount advanced from $0.87 in 2020 to $1.78 in 2025. Recent growth accelerated, with the total rising 24.6% to $1.52 in 2024 and rising 17.1% to $1.78 in 2025. The five-year annualized dividend-growth rate is 15.9%.

Applied has increased its dividend for 20 consecutive years. The history indicates a policy of periodic rate resets followed by several equal quarterly payments, rather than small changes every quarter.

Is the dividend covered?

The dividend consumes 16% of earnings, leaving most reported profit available for reinvestment, acquisitions, repurchases and balance-sheet needs. That is a comparatively wide earnings cushion for a company whose results remain exposed to semiconductor-equipment spending cycles.

SmarterDividends rates the dividend A with a safety score of 94, meaning very safe within the 80-100 scoring range. The grade reflects strong earnings coverage and the established growth record. It does not remove operating risk. Applied’s quarterly filing says results depend heavily on chipmakers’ capital spending, technology transitions and production plans. The filing also identifies trade policy and semiconductor export restrictions, including controls affecting China, as business risks.

Yield and valuation

At a share price of $462.84, Applied’s forward dividend yield is 0.45%. That is below the Technology sector median forward yield of 1.38%. The shares rose 90.7% over one year, which helps explain why the yield remains modest despite the higher payment.

SmarterDividends estimates fair value at $267.88 and classifies the shares as overvalued. That estimate is 40% below the $462.84 share price. The valuation reading is separate from dividend safety: a well-covered payment can coexist with a low yield and a market price above the fair-value estimate.

What to watch

The next scheduled ex-dividend date is November 19, 2026, at the $0.53 quarterly rate. Future declarations remain subject to board approval, financial performance, capital requirements and business conditions.

The next operating checkpoint is the fiscal fourth-quarter report. Investors can compare reported revenue and earnings with management’s $10.25 billion revenue outlook and $4.02 non-GAAP earnings guidance, including the stated ranges around both figures. Cash generation will remain relevant because Applied is simultaneously funding manufacturing capacity, research programs and shareholder distributions.

Demand in DRAM, leading-edge foundry and logic, and advanced packaging is another concrete measure to follow. Management said these areas were driving second-half growth, while additional manufacturing investment was intended to support customer demand through the end of the decade. Export controls, tariffs and the timing of customer equipment installations remain counterweights to that demand backdrop.