Lam Research (LRCX) DIvidends Date & History

Key Takeaways

• LRCX offers a low dividend yield of approximately 0.35% with an annual payout of $1.04 per share.
• Dividends are paid quarterly, with the next ex-dividend date on September 23, 2026, at $0.33 per share.
• The company has increased its dividend for 11 consecutive years, reflecting consistent growth.
• Payout ratio remains low at around 19-21%, supported by strong earnings and free cash flow.
• LRCX suits dividend growth investors seeking sustainability over high income.
• Yield and profile align closely with semiconductor equipment peers like Applied Materials and KLA.

Dividend Overview

LRCX maintains a modest dividend policy typical of growth-oriented semiconductor equipment firms. The trailing twelve-month dividend totals $1.04 per share, producing a yield near 0.35% based on recent share prices around $298. Payments occur quarterly, with the most recent increase lifting the quarterly amount to $0.33. The company is viewed as a dividend growth stock rather than a high-yield income vehicle, prioritizing reinvestment in operations while returning capital steadily to shareholders.

Dividend History and Growth

LRCX began paying dividends in 2014 and has raised the payout annually for 11 years. Quarterly dividends have risen from $0.18 in late 2014 to the current $0.33 level, with multiple increases of 13-27% in recent periods. The company has never cut its dividend, demonstrating strong consistency. Growth rates include roughly 15% over five years and 17% over the past year, supported by robust semiconductor demand and disciplined capital allocation.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable. The payout ratio stands at approximately 19-21%, well below typical thresholds for concern and indicating ample earnings coverage. Free cash flow comfortably supports distributions, with low debt levels relative to equity enhancing financial stability. Strong profitability in the semiconductor equipment sector further bolsters the outlook, reducing the risk of future cuts even during industry cycles.

Dividend Compared to Industry Peers

Within the semiconductor equipment and materials sector, LRCX’s yield of about 0.35% compares closely to peers such as Applied Materials (around 0.42%) and KLA (around 0.41%). All three maintain low single-digit payout ratios and emphasize dividend growth over high yields. This profile reflects the capital-intensive nature of the industry, where companies favor reinvestment and buybacks alongside modest distributions.

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Is This Stock Attractive for Dividend Investors?

LRCX may appeal to dividend growth investors focused on long-term capital appreciation and modest income rather than high current yields. Its low payout ratio, consistent increases over more than a decade, and solid free cash flow coverage suit those prioritizing sustainability and potential for future raises. Conservative income investors seeking higher yields might find better options elsewhere, while those with a balanced portfolio in the technology sector could value its stability and growth trajectory. The stock fits portfolios emphasizing quality over immediate income generation.

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