Eleven straight years of raises, covered four times over — at half a percent, a growth holding. The $0.33 quarterly dividend ($1.32 annualized) is 26.0% of fiscal 2026 free cash flow and the balance sheet is in a net-cash position. Lam has raised the dividend every year for eleven years, most recently 26.9% in September 2026, paid October 14, 2026. No cut in the series. The 0.52% yield is under 1%, which grades the card warn under §1.
Key risk: Semiconductor equipment is cyclical — a chipmaker capex downturn hits revenue and earnings directly.
Changes if: The yield rises above 1% through raises.
- ✓FCF payout (§3) 26.0% of FY2026 free cash flow — inside the 60% pass band.
- ✓Dividend history (§3) Eleven-year streak of annual increases; +26.9% in September 2026; no cut.
- ✓Leverage (§3) Net cash: $3,722m debt against $7,437m cash at September 27, 2026.
- !Yield (§1) 0.52% — 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.