By a News Reporter-Staff News Editor at Investment Weekly News -- KLA-Tencor Corporation (NASDAQ: KLAC) announced that its Board of Directors has authorized significant increases to the company's program to return cash to stockholders.
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As part of the program, the Board has approved an increase in the level of the company's quarterly dividend from $0.45 to $0.50 per share. This increase is expected to take effect beginning with KLA-Tencor's quarterly dividend to be declared in August 2014. This represents an 11 percent increase compared to the prior quarterly dividend and is the sixth dividend increase since KLA-Tencor first instituted its dividend in April 2005.
Additionally, the Board has approved an increase in the company's share repurchase program for up to 13 million additional shares of the company's common stock. This is in addition to the company's prior repurchase authorizations, under which approximately 2 million shares remained available for repurchase as of June 30, 2014. The company's share repurchase program, including the additional share authorization announced, is now valued at over $1 billion based upon the closing price of the company's common stock as of July 7, 2014. The company presently anticipates that the current share repurchase authorization will be executed over the next 12-18 months. The repurchases may occur from time to time, on the open market, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flow from operations and general economic conditions.
"KLA-Tencor's sustained market leadership and strong cash flow provide the resources to return significant cash to our stockholders through our dividend and share repurchase activities," said Rick Wallace, president and chief executive officer of KLA-Tencor. "KLA-Tencor has returned over $2.2 billion to stockholders over the past five fiscal years, and these latest increases in the level of the dividend and the share repurchase authorization reflect management's ongoing commitment to our stockholders as we execute our long-term growth strategies."
This announcement and other news regarding KLA-Tencor will be discussed later today (July 8, 2014) at the company's annual SEMICON West analyst briefing at the W San Francisco Hotel, with a live webcast beginning at 12:30 p.m. Pacific Daylight Time. The live webcast can be accessed through the Investor Relations page of the KLA-Tencor website at http://ir.kla-tencor.com/, and a replay of the webcast will remain available on KLA-Tencor's Investor Relations web page for 90 days following the webcast.
Keywords for this news article include: KLA-Tencor Corporation.
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