Lam Research (LRCX) DIvidends Date & History

Key Takeaways

• Lam Research offers a modest dividend yield of 0.40%, with a quarterly payment of $0.26 per share.
• The company has raised its dividend for 11 consecutive years, reflecting a commitment to shareholder returns.
• Payout ratio stands at approximately 21%, indicating strong sustainability.
• Robust free cash flow of over $4 billion annually provides ample coverage for dividends.
• Recent 13% quarterly dividend increase to $0.26 underscores ongoing growth.
• Low yield aligns with semiconductor peers, prioritizing reinvestment for growth.

Dividend Overview

Lam Research Corporation (LRCX), a leading provider of semiconductor manufacturing equipment, maintains a modest dividend policy suited to its growth-oriented profile. The current annual dividend is $1.04 per share, paid quarterly at $0.26, yielding 0.40% as of recent data. The most recent ex-dividend date was March 4, 2026, with payment on April 8, 2026. Initiated in 2014, the dividend has grown steadily, positioning LRCX as a dividend growth stock rather than a high-yield play. This approach balances shareholder returns with reinvestment in innovation amid the semiconductor industry's expansion.

Dividend History and Growth

Lam Research began paying quarterly dividends in 2014 at $0.10 per share (pre-split adjusted). Since then, it has consistently increased payouts, achieving 11 consecutive years of growth. Notable raises include a 13% hike in August 2025 from $0.23 to $0.26 quarterly, following a 10-for-1 stock split in October 2024 that adjusted prior amounts (e.g., pre-split $2.30). Over the past five years, average annual growth has exceeded 14%. No cuts have occurred, demonstrating commitment even through industry cycles. Total dividends paid in 2025 reached $0.98 (split-adjusted).

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, with a payout ratio of 21.31%, well below 75% thresholds for safety. Earnings per share comfortably cover payments, supported by strong free cash flow exceeding $4 billion in recent fiscal years. Low debt levels and high gross margins (around 49%) further bolster stability. This financial strength allows continued growth without straining operations in the capital-intensive semiconductor sector.

Dividend Compared to Industry Peers

In the semiconductor equipment industry, LRCX's 0.40% yield is in line with peers, reflecting a focus on growth over high payouts. AMAT (Applied Materials) offers about 0.50%, KLAC (KLA Corporation) around 0.60%, and ASML at 0.44%. The sector average hovers near 0.45-0.62%, prioritizing R&D and buybacks amid AI-driven demand. LRCX matches this profile, appealing to investors seeking balanced returns.

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Is This Stock Attractive for Dividend Investors?

Lam Research Corporation (LRCX) suits dividend growth investors who prioritize long-term payout increases over immediate high yields. Its 11-year streak and low 0.40% yield appeal to those comfortable with modest income supplemented by capital appreciation in the semiconductor space. Conservative investors may value the sustainable 21% payout ratio and strong cash flow coverage, offering resilience during downturns. However, high-yield seekers might look elsewhere, as the profile aligns more with total return strategies blending dividends, buybacks, and growth. Long-term holders benefit from consistent raises tied to industry tailwinds like AI and chip demand, though volatility remains a factor.

Disclaimer

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