Applied Materials has benefited from the latest tech trend in artificial intelligence. The Santa Clara, California-based semiconductor manufacturer builds AI chips used in data centers, and its stock has risen significantly in recent years. The company posted nearly $7 billion in net income on record revenue of $28.4 billion in fiscal 2025, and has returned some of that profit to shareholders through dividends.
Here’s a closer look at Applied Materials’ dividend history and how its payouts increased over the years.
Applied Materials dividend quick facts
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Current quarterly payout: |
$0.53 per share |
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Current annual payout (estimated fiscal 2026): |
$2.05 per share |
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Yield, 12-month trailing dividend yield: |
0.36% |
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Payout ratio: |
20% |
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Frequency: |
Quarterly |
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Years of consecutive dividend increases: |
16 |
Based on Applied Materials’ August 6, 2026 stock price, fiscal 2025 and nine-month 2026 earnings and dividends.
How often does Applied Materials pay dividends?
Applied Materials pays a cash dividend on a quarterly basis. Its fiscal year follows a 52- or 53-week schedule, starting in late October and ending on the last Sunday in October of the following calendar year.
Dividend payments are typically made in the middle of March, June, September, and December.
What is Applied Materials’ dividend yield?
Applied Materials’ 12-month trailing dividend yield was 0.36% as of early August 2026. That’s based on the 12-month dividend payment of $1.91 for the quarters in September and December of 2025, and March and June of 2026, and the August 6, 2026, closing price of $527.48.
By comparison, the estimated trailing 12-month average dividend yield for stocks in the S&P 500 index was 1.04%, according to data compiled by multpl.com
What is Applied Materials’ dividend payout ratio?
In fiscal 2025, Applied Materials paid total dividends of $1.72 per share, against net income of $8.66 per share. That put its dividend payout ratio — calculated by dividing the annual dividend per share by the earnings per share — at nearly 20%. By comparison, the average 2025 payout ratio for companies in the S&P 500 was 32.28%, according to data compiled by the Hartford Funds, an asset management firm.
When did Applied Materials start paying dividends?
Applied Materials was founded in 1967 in Mountain View, California, and went public in 1972, but it would not pay its first dividend until 2006. Its initial way of returning value to shareholders was via stock splits, and its last stock split was in April 2002 — just toward the tail end of the dot-com bust.
With its stock trading in a narrow range following the end of the dot-com bubble, its run of stock splits starting in 1980 came to an end. Applied began its first quarterly cash dividend payment on June 8, 2005, at 3 cents per share.
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Applied Materials’ dividend increases
Applied Materials paid its first quarterly dividend of 3 cents a share in June 2005, and quickly raised it to 5 cents a year later. By June 2013, the quarterly dividend doubled to 10 cents a share, and the total dividend for 2013 amounted to 39 cents.
Soon, Applied made significant increases in its dividends as revenue and profit increased. In 2019, the chipmaker was making an annual payment of 83 cents, rising to $1.78 by 2025.
Applied last increased its quarterly dividend in June 2026, to 53 cents, from 46 cents in March.
Who benefits the most from Applied Materials’ dividend?
Based on Applied’s 2026 proxy statement, institutional investors BlackRock and The Vanguard Group held 76.8 million shares and 74.1 million shares, respectively, as of the end of 2025. Among Applied’s executives, CEO Gary E. Dickerson held the largest number of shares, with 1,398,872.
Related: Does IBM pay dividends? History, yield & payout ratio explained
