Shares of KLA Corp (KLAC) gained momentum in premarket trading on Tuesday, extending its seventh consecutive gain. The semiconductor equipment company announced an 11.5% increase in its dividend and a $2 billion expansion in its stock repurchase program.
Boosted Dividend and Implications
KLA Corp raised its quarterly dividend from $1.30 per share to $1.45 per share. Calculated based on Friday’s closing price of $507.02, the new annual dividend rate indicates a dividend yield of 1.14%. Comparatively, the VanEck Semiconductor ETF offers a yield of 0.77%, while the S&P 500 provides a yield of 1.52%.
Expanded Stock Repurchase Program
KLA’s Confidence in its Business Model
Chief Executive Rick Wallace expressed confidence in KLA Corp’s business model, emphasizing its focus on product differentiation, free cash flow generation, and assertive capital allocation. This move underscores the company’s commitment to long-term growth and value creation.
Over the past three months, KLA Corp’s stock has gained 10.7%, outperforming the VanEck chip ETF (8.3%) and the S&P 500 (5.7%).
Stay tuned for further updates on KLA Corp as it continues to thrive in the semiconductor equipment industry.