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SANTA CLARA - Applied Materials, Inc. (NASDAQ:AMAT), a prominent player in the Semiconductors & Semiconductor Equipment industry with a market capitalization of $139.33 billion, announced Tuesday that its Board of Directors has approved a quarterly cash dividend of $0.46 per share on the company’s common stock, payable on September 11, 2025, to shareholders of record as of August 21, 2025. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.46, indicating robust liquidity.
The semiconductor equipment manufacturer noted this dividend represents a 15-percent increase from the previous $0.40 per share, which was announced in March 2025. This marks the eighth consecutive year of dividend increases for the company. According to InvestingPro data, Applied Materials has maintained dividend payments for 21 consecutive years, demonstrating its commitment to shareholder returns. The company’s strong financial position is reflected in its impressive return on equity of 36%.
According to the company’s statement, Applied Materials has increased its dividend per share at a compound annual growth rate of approximately 15 percent over the past decade through fiscal 2024, distributing nearly 90 percent of free cash flow to shareholders during this period.
In the second quarter of fiscal 2025, the company returned nearly $2.0 billion to shareholders through a combination of dividends and share repurchases. Applied Materials reported approximately $15.9 billion remaining in its share repurchase authorization at the end of the quarter.
The materials engineering solutions provider, which produces equipment used in semiconductor and display manufacturing, stated that the cash dividend is a key component of its capital allocation strategy.
The company noted that future dividend declarations remain subject to Board approval and will depend on financial conditions, results of operations, capital requirements, and other business factors, based on information provided in the press release statement.
In other recent news, Applied Materials has been the focus of several analyst updates following its financial performance reports. The company reported earnings per share (EPS) that exceeded consensus estimates for both the April and July quarters, while revenue was slightly below expectations in April but aligned in July. Morgan Stanley has upgraded Applied Materials from underweight to equalweight, adjusting its fiscal year 2025 and 2026 revenue and EPS estimates to $28.6 billion and $9.36, and $28.1 billion and $9.04, respectively. TD Cowen maintained a Buy rating but lowered its price target from $225 to $220, citing the strength of Applied Materials’ broad portfolio amid decreased revenue from China.
Cantor Fitzgerald reiterated its Overweight rating with a $200 price target, noting that Applied Materials’ EPS surpassed expectations despite a modest revenue miss. Citi increased its price target to $190 from $170, maintaining a Buy rating and highlighting positive trends in leading-edge foundry and logic revenue. Meanwhile, JPMorgan reduced its price target to $210 from $240, keeping an Overweight rating, and pointed to growth drivers like advancements in foundry and logic at the 2nm scale. Despite some headwinds, particularly in mature technologies and the ICAPS division, analysts express confidence in Applied Materials’ ability to navigate the current market environment.
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