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California-based semiconductor supplier KLA-Tenor ( KLAC) is one of the world's biggest manufacturers of equipment used in the creation of integrated circuits. That means that KLA had heavy exposure to the recent downturn in semiconductor stocks - and the semiconductor manufacturing halt that accompanied the depths of 2008's recession. As the industry restarts its engines, KLA should continue to climb back to its past sales numbers.

Thanks to a massive store of valuable intellectual property, KLA has significant competitive advantages over peers. As a result, the firm boasts a large, sticky installed base. Even though the recession heavily impacted KLA's revenue stream, profitability levels have returned to pre-crisis levels. That increased profitability is helping to boost KLA's increased payouts to shareholders.

Last week, management announced a 40% dividend increase, bringing the firm's total payout to 35 cents per share. That represents a 2.3% yield at current price levels.

KLA is on of the top holdings of David Tepper's Appaloosa Management.

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