Lam Research Initiates Dividend; Announces $850 Mln Buyback Authorization

(RTTNews) - Lam Research Corp. (LRCX) said Tuesday that its Board of Directors has approved a $1.0 billion capital return program with the initiation of the company's first ever quarterly dividend and an $850 million share repurchase authorization with execution currently planned over the next two year timeframe.

The company plans to declare a quarterly dividend of $0.18 per share of common stock equivalent to an annual yield of about 1.27% based on the April 28, 2014 closing stock price of $56.52. On an annualized basis, this will return about $117 million to shareholders based on shares outstanding as of March 30, 2014.

The first dividend payment has been declared and will be made on July 2 to holders of record on June 11.

Additionally, the company is authorized to repurchase up to $850 million of common stock, which includes about $49 million available under the company's prior authorization in the amount of $250 million.