Applied Materials (AMAT) will raise its quarterly dividend by 100% to $0.20 per share in the first quarter of 2018. This marks the first dividend increase in 5 years for AMAT with the previous dividend hike dating back to March 2013.

The increased dividend will be paid on March 14, 2018 to shareholders of record as of February 21, 2018. The new dividend yield for AMAT is 0.7%.

“The dividend increase and additional repurchase authorization reflect Applied’s confidence in the underlying strength of our markets along with our company’s technology leadership and strategy to deliver profitable growth and increase shareholder value,” said Dan Durn, Senior Vice President and Chief Financial Officer.

Applied Materials, Inc. is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. The company provides manufacturing equipment, services and software to the global semiconductor, display and related industries. Applied Materials has three operating segments: Semiconductor Systems, Applied Global Services and Display and Adjacent Markets. The company's customers include manufacturers of semiconductor chips, liquid crystal and organic light-emitting diode (OLED) displays, and other electronic devices. Applied Materials was incorporated in 1967 and has paid a dividend every year since 2005.