#3 - Applied Materials (NASDAQ:AMAT)
You might not expect to see a semiconductor on a list of dividend stocks to buy. But Applied Materials Inc. (NASDAQ: AMAT) is one to consider. Applied Materials manufactures Dynamic Random-Access Memory (DRAM). The company’s revenue and earnings have been fine. However, many analysts are expecting DRAM growth to slow next year.
That seems like an unlikely bet, as more demanding AI applications will require even more memory. And Applied Materials is well-positioned to meet that demand.
AMAT stock is flat in 2024, but over the last five years, it’s delivered an impressive 163.59% total return to investors. With a dividend yield of just 0.96%, much of that growth is due to stock price appreciation.
Nevertheless, AMAT has increased its dividend for seven consecutive years and will most likely make it eight straight years in the first quarter of 2025. The company has delivered an impressive annualized three-year growth rate of 11.93% and has a sustainable payout ratio of around 18.5%.
About Applied Materials
Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.
Read More - Current Price
- $168.37
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $220.29 (30.8% Upside)
