KLA-Tencor Dividend Jumps by 67%

KLA-Tencor (KLAC: 50.77 -1.07%) announced that the company will increase their quarterly dividend by 67% to $.25 per share.

 

The dividend increase will push KLA-Tencor’s current yield to 3.4% based on yesterday’s closing price.

 

This marks only the second time in the last five years that KLA has increased their dividend. The chip maker cited strong cash flows and solid financial positioning with giving the company the flexibility to increase the cash dividend. The company reiterated that they have sufficient capital to fuel future growth initiatives.

 

Rick Wallace, president and chief executive officer of KLA-Tencor said, “We remain committed to increasing shareholder value through executing our strategic objectives of customer focus, growth, operations excellence, and talent development. This increase in the level of the dividend reflects our confidence in the outlook for KLA-Tencor and our commitment to rewarding our shareholders for their continued investment.”

 

KLA-Tencor shares have fallen 18% this year, although most of the decline came in January following disappointing quarterly results. Value investors have been giving KLAC more attention recently as the stock now trades at less than 10x 2011 EPS.

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