Dividends and Share Repurchases
KLA has a proven track record of returning cash to shareholders, including a regular quarterly dividend and ongoing share repurchase program. We believe our track record of delivering strong capital returns offers predictable and compelling value creation for our shareholders.
In the 12-months ended Sep-20, KLA returned $1.33 Billion to shareholders (including dividends and share repurchases), or 82% of our free cash flow.
The dividend is an integral piece of KLA’s disciplined approach to capital management and reflects the company's continued strength in free cash flow generation. Our targeted dividend payout ratio is 35%, supporting our objectives of sustainability and growth of dividends.
Since first establishing the dividend in 2006, the annual dividend level has grown 15% (2004-2020 CAGR).
In 2020, we raised our quarterly dividend to $0.90 per share, marking the 11th consecutive annual dividend increase. Our dividend history is available below.
Share repurchases are part of KLA’s balanced approach to capital returns to shareholders, including dividends and share repurchases. We target total capital returns of 70% or more of free cash flow generated by the company over the long term.
Over the past 12-months ending Sept-20, we repurchased $788 million of our common stock, and total returns to shareholders (including dividends and share repurchases), was $1.33 Billion, or 82% of free cash flow. Our share repurchase activity over the past 10 years is shown below: