Lam Research announces $1.3 billion capital return program
Lam Research Corporation has announced that its Board of Directors has approved a $1 billion share repurchase authorization, with execution planned over the next 12 to 18 months; and a 50 percent increase of the company's quarterly dividend.
On an annualized basis, the quarterly dividend of $0.45 per share of common stock will return approximately $291 million to stockholders based on shares outstanding as of September 25, 2016. The increased dividend payment has been declared and will be made on January 4, 2017 to holders of record on December 14, 2016. Future dividend payments are subject to review and approval by the Board.
Additionally, the company is authorized to repurchase up to $1 billion of common stock; this authorization supersedes the remaining balances from any prior authorizations. Repurchases may be made through both public market and private transactions, and may include the use of derivative contracts and structured share repurchase agreements. The share repurchase program may be suspended or discontinued at any time and does not have a set expiration.
"Our expanded, $1.3 billion capital return program is strong validation of the Board's confidence in our financial performance and strong cash generation capability," stated Martin Anstice, president and chief executive officer of Lam Research. "As we execute on the outstanding business opportunities in front of us, we remain committed to augmenting returns to stockholders through the combination of opportunistic share repurchases and a bias towards growing our dividend over time."