Applied Materials, Inc.

AMAT
Technology
$492.32
0.26%Overvalued

Applied Materials, Inc. (AMAT) is a Technology company that currently yields 0.26% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $73.21 and the overvaluation threshold at $217.10. Applied Materials, Inc. holds a quality score of 35/100 (Risky), reflecting 14 consecutive years of dividend growth with a 16% payout ratio. The 5-year dividend CAGR stands at -17.4%.

AMAT Dividend Yield History — Weiss Valuation

Underval. $73.21Overval. $217.10

Distance to undervalued

Entry price is stretched

Needs 85.1% downside to reach the Weiss buy zone

Undervaluation starts near $73.21, where the annual dividend would imply roughly 1.75% yield. That is 1.49% above today's yield.

Buy-zone price

$73.21

Target yield

1.75%

Research checklist

What to clear before buying the yield

Updated Aug 23, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

16%

Earnings coverage leaves room for noise.

Cash payout

55%

Free cash flow coverage supports the payment.

Dividend growth

-17.4%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-08-222026-08-23

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Applied Materials, Inc. is trading near its historical overvaluation band.

Current yield 0.3% vs historical max 3.2% (8% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 16%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 35/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

AMAT Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$26

Year 10 Income

$27

Yield on Cost

0.27%

Total Income

$263

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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AMAT Dividend Quality Score

Quality Score

35/ 100

Risky

Payout Ratio25/25
Dividend Streak0/25
Growth (CAGR 5Y)0/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$492.32
Annual Dividend$1.28
Current Yield0.26%
Yield — Max (10Y)3.18%
Yield — Min (10Y)0.64%
Undervalued Below$73.21
Overvalued Above$217.10
Payout Ratio16.48%
CAGR Dividend 5Y-17.4%
CAGR Dividend 10Y-2.2%
Years No Cut

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14
consecutive years of dividend growth