Applied Materials Stock Pays Out $27 Bil – Investors Take Note
In the last five years, Applied Materials (AMAT) stock has returned $27 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, AMAT stock has returned the 69th highest amount to shareholders in history.
| AMAT | S&P Median | |
|---|---|---|
| Dividends | $5.4 Bil | $3.0 Bil |
| Share Repurchase | $21 Bil | $3.0 Bil |
| Total Returned | $27 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 8.3% | 16.6% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
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| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $514 Bil | 12.8% | $75 Bil | $439 Bil |
| GOOGL | $296 Bil | 7.2% | $17 Bil | $279 Bil |
| MSFT | $223 Bil | 6.9% | $105 Bil | $118 Bil |
| JPM | $176 Bil | 20.6% | $71 Bil | $105 Bil |
| META | $159 Bil | 9.3% | $10 Bil | $149 Bil |
| XOM | $152 Bil | 24.0% | $79 Bil | $73 Bil |
| BAC | $125 Bil | 31.9% | $45 Bil | $80 Bil |
| CVX | $112 Bil | 30.2% | $57 Bil | $55 Bil |
| WFC | $105 Bil | 41.7% | $22 Bil | $83 Bil |
| NVDA | $96 Bil | 2.0% | $3.0 Bil | $93 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for AMAT. (see Buy or Sell Applied Materials Stock for more details.)
Applied Materials Fundamentals
- Revenue Growth: 2.1% LTM and 2.4% last 3-year average.
- Cash Generation: Nearly 22.0% free cash flow margin and 29.7% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for AMAT was 0.9%.
- Valuation: Applied Materials stock trades at a P/E multiple of 40.8
| AMAT | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Semiconductor Materials & Equipment | – |
| PE Ratio | 40.8 | 24.1 |
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| LTM* Revenue Growth | 2.1% | 6.8% |
| 3Y Average Annual Revenue Growth | 2.4% | 5.5% |
| Min Annual Revenue Growth Last 3Y | 0.9% | 0.4% |
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| LTM* Operating Margin | 29.7% | 18.6% |
| 3Y Average Operating Margin | 29.3% | 18.1% |
| LTM* Free Cash Flow Margin | 22.0% | 14.3% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from AMAT stock, but what about the risk?
AMAT Historical Risk
Applied Materials isn’t immune to big drops. It slid 76% in the Dot-Com crash and 64% during the Global Financial Crisis. The 2018 correction wasn’t kind either, with a 52% fall, and during the inflation shock, it dipped over 55%. Even the Covid pandemic saw a near 44% pullback. Solid fundamentals matter, but this stock’s history shows it can take a hit when the market turns sour.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read AMAT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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