KLA Corp hikes dividend by 23.8%

Semiconductor company KLA Corporation (KLAC) today announced a 23.8% dividend increase to $1.30 quarterly per share. This marks the 13th consecutive annual dividend increase for KLA. Since inception in 2006, KLA has grown the quarterly dividend level at an approximately 15% compounded annual growth rate. In 2021 KLAC announced a 16.7 percent dividend increase to $1.05 per share in 2021. The dividend yield jumps from 1.3% to 1.6% for KLAC based on yesterday's closing stock price of $323.79.

KLAC also announced a $6 billion share repurchase program, including approximately $3 billion Accelerated Share Repurchase (ASR) to be completed over the next 3-6 months, with the remaining amount to be repurchased over the next 12-18 months, subject to market conditions.

"We are excited to host KLA Corporation's 2022 Investor Day to provide the investment community with a deeper understanding of our company, our financial performance, and the opportunities that lie before us as we execute our strategic objectives," said Rick Wallace, president and chief executive officer. "The semiconductor industry has become even more essential to an increased number of industries and geographies and is expected to grow and change in ways that benefit KLA," added Wallace. "Today's announcements of a new share repurchase authorization and increase in the quarterly dividend level reflect our long standing focus on productive capital allocation and confidence in our business strategies."

KLA Corporation, formerly KLA-Tencor Corporation, is a supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. The company's products are also used in a number of other high technology industries, including the packaging, light emitting diode (“LED”), power device, compound semiconductor, and data storage industries, as well as general materials research. KLAC was founded in 1997 through the merger of KLA Instruments and Tencor Instruments, two long-time leaders in the semiconductor equipment industry that began operations in 1975 and 1976, respectively. In 2019 the company changed its name from KLA-Tencor to KLA Corporation.