This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Summer Love: A Tech Stock Where Dividends Increase

Stocks in this article: KLAC

NEW YORK ( TheStreet) -- Summertime is in full swing. This is the season of the year when millions head for the mountains or the seashore to commune with nature.

Camping is one of the most popular pastimes during summer. There's nothing like spreading out your sleeping bag under the stars while listening to the sound of a babbling brook nearby.

Now that I have your attention -- picture this. You recently purchased 100 shares of KLA-Tencor (KLAC) at around $54 a share.

You're camping by a pristine stream in the mountains and a member of your investment club is hiking by with a big smile on her face.

"What are you looking so pleased about?" you inquire. "I just read an announcement that KLA-Tencor is raising its quarterly dividend 12.5% to 45 cents per share," she replies confidently.

"I found out that it's the fifth dividend increase since KLA-Tencor first instituted its dividend back in April 2005. With the most recent quarter's EPS results set to be announced on July 25th analysts are anticipating that the dividend payout ratio will remain at a modest 40%, sustainable level."

It's a cool day with a gentle breeze. You built a crackling campfire and are roasting marshmallows while your freshly brewed pot of organic Earl Grey tea is cooling down to a drinkable temperature.

"Are you certain about that?" you ask with a note of skepticism. "Absolutely, I even checked it out at minutes before I left the office for the trailhead to begin my hike," she replies

She's obviously pleased because she owns shares, too, and to make matters sweeter the stock has popped 4.8% higher in one day to a new 52-week high price of $58.48.

You realize this is a cause for celebration so you ask her to sit by the fire and roast a marshmallow with you and enjoy some of your aromatic tea. She says "be glad to" and then says, "I bought shares of KLAC at $55. With the annual dividend at $1.80 I'm going to be receiving a 3.27% annual yield."

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs