MKS (MKSI) DIvidends Date & History

Key Takeaways

• MKS Instruments offers a forward dividend yield of 0.37%, below the five-year average of 0.77%.
• Quarterly dividend recently increased 14% to $0.25 per share, annualizing to $1.00.
• Payout ratio of 20.14% signals excellent earnings coverage and sustainability.
• Stable dividend payments with modest growth, no recent cuts noted.
• Low yield aligns with semiconductor equipment peers like AMAT (around 0.7%) and LRCX (similar).
• Recent ex-dividend date was February 23, 2026, with payment on March 6, 2026.

Dividend Overview

MKS Instruments (MKSI), a provider of instruments, systems, and solutions for semiconductor manufacturing, maintains a modest quarterly dividend policy. The current forward annual dividend is $1.00 per share, yielding 0.37% at recent prices around $270. Payments occur quarterly, with the most recent ex-dividend date on February 23, 2026, and payment on March 6, 2026. This positions MKSI as neither a high-yield nor aggressive dividend growth stock, but rather one offering reliable, low payouts supported by its operations in the technology sector. The dividend appeals to investors prioritizing stability over high income in a cyclical industry.

Dividend History and Growth

MKS Instruments has maintained consistent quarterly dividend payments for over a decade, with annual payouts rising gradually from $0.64 in 2013. Recent growth includes a 14% increase to $0.25 per share declared on February 10, 2026, up from $0.22 previously. Year-over-year dividend growth is approximately 3.41%, with a five-year compound annual growth rate around 1.92%. No dividend cuts have occurred recently, reflecting a strategy of steady, conservative increases tied to financial performance rather than aggressive expansion. This profile suits long-term holders in the semiconductor space.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, underscored by a trailing payout ratio of 20.14% against trailing twelve-month earnings per share (EPS) of $4.37. This low ratio leaves ample room for reinvestment or future hikes. Free cash flow (FCF) has been positive in recent years, reaching $0.41 billion in 2024, though variable in 2025. Despite net debt of $3.6 billion and a leverage ratio of 3.7 times (likely EBITDA), the conservative payout ensures coverage. Overall financial stability, with 2025 revenue of $3.9 billion up 10% year-over-year, supports ongoing payments.

Dividend Compared to Industry Peers

In the semiconductor equipment industry, MKSI's 0.37% forward yield is in line with or slightly below peers, where average yields hover around 0.4-0.5%. For instance, AMAT offers about 0.7%, LRCX similar, and KLAC around 0.8%, reflecting the sector's focus on growth over income. TER matches closely at lower yields. MKSI's profile is typical for a growth-oriented industry, prioritizing capital for R&D and acquisitions over higher distributions.

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Is This Stock Attractive for Dividend Investors?

MKS Instruments may appeal to conservative dividend investors seeking modest income alongside exposure to the semiconductor sector's growth potential. Its low 0.37% yield and 20% payout ratio offer stability without straining finances, ideal for those prioritizing capital preservation over high current income. Long-term holders could benefit from potential dividend growth amid industry tailwinds like AI and advanced chip demand, though cyclical risks persist. It suits portfolios balancing tech growth with some yield, but less so for yield-chasers pursuing 3%+ returns. High debt levels warrant monitoring, yet strong earnings coverage mitigates concerns. Overall, it fits patient, diversified income strategies rather than aggressive dividend growth pursuits.

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