Lam Research (LRCX) raised its quarterly dividend 26.9 percent to $0.33 per share, extending an 11-year streak of annual increases and lifting the annualized payout to $1.32. The semiconductor equipment maker announced the raise while paying out only about 18 percent of earnings, a coverage level that leaves substantial room for future increases.
The setup
The increase went ex-dividend on September 23, 2026, and holders of record that day receive the new rate when the dividend is paid on October 14. Investors buying shares now will first qualify for the December payment, assuming the board declares it on its usual schedule.
Lam Research makes the etch and deposition equipment chipmakers use to fabricate memory and logic chips. The company has raised its payout every year for 11 consecutive years, with no annual cut in its reported history, including through the semiconductor downturns of that period.
Key numbers
Lam’s dividend history shows a pattern of holding the rate steady for three quarters, then raising once a year in September. The two tables below track the payout and what the new rate means for income at common position sizes.
| Ex-dividend date | Quarterly dividend | Change |
|---|---|---|
| December 11, 2024 | $0.23 | — |
| March 5, 2025 | $0.23 | 0.0% |
| June 18, 2025 | $0.23 | 0.0% |
| September 24, 2025 | $0.26 | +13.0% |
| December 3, 2025 | $0.26 | 0.0% |
| March 4, 2026 | $0.26 | 0.0% |
| June 17, 2026 | $0.26 | 0.0% |
| September 23, 2026 | $0.33 | +26.9% |
At the new quarterly rate, the annualized dividend is $1.32 per share. The income below assumes the board holds the new rate through the next four payments.
| Shares held | Annual dividend income |
|---|---|
| 100 | $132 |
| 500 | $660 |
| 1,000 | $1,320 |
| 2,000 | $2,640 |
What to watch
- Coverage. An 18 percent earnings payout ratio gives the board wide latitude to keep raising even if chip-equipment demand softens in 2027.
- Memory spending. Lam’s revenue follows fab investment cycles, so watch memory and high-bandwidth memory capital spending commentary in the next earnings report.
- September cadence. Lam has raised its dividend in September for years running; the next scheduled increase would arrive in late 2027.
- Payout trajectory. The dividend has grown from $0.23 to $0.33 in two years, a cumulative increase of about 43 percent.
Dividend growth of this size is uncommon in semiconductor capital equipment, where cyclical revenue makes boards cautious about fixed commitments. A payout ratio near 18 percent is the cushion that makes the streak durable.
Common mistakes dividend investors make here
- Chasing the yield. Lam’s yield remains modest; buying it for income alone ignores the cyclical equipment business behind the payout.
- Ignoring the cycle. Equipment orders swing with memory and logic capital spending, and a dividend raise does not repeal that cycle.
- Misreading the timing. The September 23 record date has passed, so new buyers wait for the December distribution rather than the October 14 payment.
Bottom line
A 26.9 percent raise with an 18 percent payout ratio signals a board confident in cash flow. Shareholders who already own LRCX collect 27 percent more per share starting with the October 14 payment. Buyers entering now wait for the next declaration, but an 11-year streak suggests the trend continues.
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