A steadily rising dividend from a cash-rich equipment maker — at half a percent, still a growth holding. The $0.53 quarterly dividend ($2.12 annualized) is 24.3% of fiscal 2025 free cash flow, the balance sheet is in a net-cash position, and the dividend has risen nine years in a row — up 15% in March 2026, with $0.53 declared September 10, 2026, payable December 10, 2026. No cut in the series. The 0.51% yield is under 1%, which grades the card warn under §1.
Key risk: Semiconductor equipment is cyclical — orders fall when chipmakers cut capital spending, and earnings follow.
Changes if: The yield rises above 1% through raises.
- ✓FCF payout (§3) 24.3% of FY2025 free cash flow — inside the 60% pass band.
- ✓Dividend history (§3) Nine consecutive annual increases; +15% in March 2026; no cut.
- ✓Leverage (§3) Net cash: $5,245m noncurrent debt against $7,037m cash at July 26, 2026.
- !Yield (§1) 0.51% — under 1%, graded warn as a growth holding.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.