Cabot Microelectronics Corporation (CCMP) will start paying a quarterly dividend of $0.18 per share.

The company's Board declared an initial quarterly cash dividend of $0.18 per share payable on or about April 15, 2016 to shareholders of record at the close of business on March 17, 2016. The $0.18 dividend would represent an annualized rate of $0.72 per share, or approximately $18 million in aggregate, equivalent to approximately 30 percent and 20 percent of the company's fiscal year 2015 net income and free cash flow, respectively.

David Li, President and CEO of Cabot Microelectronics, stated, "Over more than fifteen years as a public company, we have achieved a track record of strong profitability and cash flow generation. During this period we have invested in increasing our capabilities and expanding our international footprint. This has enabled us to serve our customers on a global basis, and has positioned our company as a leader in our industry. We believe that our initiation of a quarterly dividend, coupled with our expanded share repurchase program, demonstrates our confidence in our future cash generation capabilities, enabling us to distribute capital to our shareholders on a regular basis, and representing a continuation of our historical commitment to capital deployment."

Over the last twelve years, the company has distributed approximately $695 million to its shareholders, approximately $345 million through share repurchase programs, and nearly $350 million in 2012 through a leveraged recapitalization with a special cash dividend.

Cabot Microelectronics Corporation is a supplier of CMP polishing slurries and a CMP pad supplier to the semiconductor industry. The Company develops, produces and sells CMP slurries for polishing conducting and insulating materials used in IC devices, and also for polishing the disk substrates and magnetic heads used in hard disk drives.