Semiconductor equipment maker KLA on Tuesday announced a 12% increase to its quarterly dividend and raised its stock buyback plans. The news drove KLAC stock near record high territory.
The Milpitas, Calif.-based company increased its quarterly dividend to $1.45 per share from $1.30. KLA has raised its quarterly dividend for 14 consecutive years.
KLA also announced a $2 billion share repurchase authorization that is incremental to the $1.6 billion remaining under its current stock buyback plan.
"Today's announcement is consistent with KLA's long-standing confidence in our business model focused on product differentiation, free cash flow generation, and assertive capital allocation," Chief Executive Rick Wallace said in a news release.
He added, "It also reflects optimism in our growth strategies and continued progress towards our 2026 financial targets."
KLAC Stock Rises On News
On the stock market today, KLAC stock climbed 1.1% to close at 512.55. Earlier in the session, it advanced as much as 1.9% to 516.85.
KLAC stock is in a flat base with a buy point of 517.30, according to IBD MarketSmith charts. That buy point is also its all-time high, which it reached on Aug. 1.
In a positive sign, the relative strength line for KLAC stock is surging higher as it outperforms the S&P 500 index.
Further, KLA is on the IBD Tech Leaders and IBD Long-Term Leaders stock lists.
Wells Fargo analyst Joe Quatrochi reiterated his overweight rating on KLAC stock with a buy point of 575.
In a note to clients Tuesday, he said the dividend hike and stock buyback increase highlighted confidence in company's business.
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