Lam Research dividend: cash coverage and yield
Lam Research pays $0.33 per share quarterly and $1.32 per share annually at the declared rate. Its fiscal 2026 free cash flow was $4,891 million, but fiscal 2026 distributions exceeded free cash flow.
How much does Lam Research pay per share over the years shown?
Dividends remain at $1.32 per share through 2027, then rise to $1.58 in 2028 and $1.90 in 2029. The starting point is the declared quarterly dividend of $0.33, which followed a 27% increase. The base case assumes slower 20% annual increases because Lam has net cash and generated $4,891 million of fiscal 2026 free cash flow, but its cycle and recent distributions above free cash flow justify the bear cuts.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.76 | 4.15 | 2.90 | 3.32 | 3.28 |
| − Dividends paid, per share | 1.01 | 0.89 | 0.77 | 0.67 | 0.58 |
| − Share buybacks, per share | 3.05 | 2.65 | 2.15 | 1.48 | 2.75 |
Does Lam Research’s cash cover its dividend?
Dividends offer a more direct return. Lam raised its quarterly dividend to $0.33 per share in August 2026. Debt reduction also improved financial flexibility, and the balance sheet moved from net debt in June 2022 to net cash by June 2026. But fiscal 2026 distributions exceeded free cash flow, so Lam used some of that flexibility to support shareholder returns.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 4,891,252 | 5,414,078 | 4,255,599 | 4,677,370 | 2,553,640 |
| − Dividends paid | 1,270,635 | 1,149,542 | 1,018,915 | 907,907 | 815,290 |
| − Share buybacks | 3,851,343 | 3,422,321 | 2,842,807 | 2,017,012 | 3,865,663 |
| = Free cash flow not paid out | 842,215 | 393,877 | 1,752,451 | ||
| = Paid out more than the free cash flow | 230,726 | 2,127,313 | |||
| Paid to shareholders | 5,121,978 | 4,571,863 | 3,861,722 | 2,924,919 | 4,680,953 |
What could change Lam Research’s dividend?
During 2028 and 2029, stronger cash conversion would support both laboratory investment and repurchases. Continued working-capital pressure would do the opposite; Lam’s latest working-capital use was $1,914 million.
What is Lam Research’s dividend yield today against its price?
By October 2029, the range runs from $176.14 in the bear case to $522.06 in the bull case, against today’s $318.84.
| Today (Oct 11, 2026) | |
|---|---|
| Share price | 318.84 |
| Free cash flow yield (calculated) | 1.2% |
| Dividend yield (calculated) | 0.4% |