Applied Materials

Applied Materials is the largest supplier of equipment and services to the semiconductor industry, providing the machines chipmakers use to deposit, etch and inspect materials on silicon wafers. As a critical enabler of advanced manufacturing, it benefits from long-term demand for more powerful chips, though its business swings with the cyclical capital spending of its customers. Applied Materials has raised its dividend for over a decade, supported by strong margins and cash flow, but the yield is low and buybacks dominate its capital return. The payout is well covered even through downturns. The stock offers exposure to semiconductor growth with a modest, dependable and rising dividend, best suited to investors who accept industry cyclicality.