The Dynamic Dividend

KLA-Tencor Boosts Dividend by 40%

KLA-Tencor (KLAC) announced a 40% increase to its dividend rate this morning, improving its quarterly payout from $0.25 to $0.35 per share. This is the second consecutive year the company has given its shareholders a large raise.

Last year, the supplier for the semiconductor and related microelectronics industries boosted its payout by 67%. KLA-Tencor has now raised its dividend three times since it began returning cash to shareholders in 2005, improving its payout by a total of 192% over that period.

Shares of KLAC opened Tuesday’s session trading at $41.38, where they now feature a 3.38% dividend yield — one of the fattest sustainable yields in the technology sector.