Applied Materials (AMAT) will raise its quarterly dividend by 9.1 percent to 24 cents quarterly. Last year the semiconductor company hiked its quarterly dividend by 4.8 percent.

The next dividend is payable on June 17, 2021 to shareholders of record as of May 27, 2021. A new annual rate of 96 cents per share yields 0.8% at a stock price of $114.29. The quarterly cash dividend is a key component of Applied’s capital allocation strategy, and this marks the fourth consecutive year of dividend increases.

“We are excited about our growth opportunities as we help accelerate major technology inflections for our customers,” said Gary Dickerson, Applied Materials president and CEO. “The dividend increase reflects the strength of our financial position, which enables us to fuel innovation and provide attractive cash returns to shareholders.”

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.