ASML Hikes Dividend While Deploying €12 Billion Buyback

ASML is rewarding shareholders with a noticeably higher quarterly payout, even as the stock eased modestly on the session. The combined move highlights management?s emphasis on stable cash generation and continued capital returns through buybacks.

Key takeaways:
- Quarterly dividend increases from 1.88 to 3.1771 USD per share
- Ex-dividend date: April 27; payment date: May 5
- Additionally, a share repurchase program totaling ?12 billion is underway
- MarketBeat consensus among analysts: Moderate Buy, with an average target of 1,475 USD

Dividend uplift paired with buybacks
ASML?s quarterly distribution climbs to 3.1771 USD per share, up from 1.88 USD previously. On an annualized basis, this translates to a payout of 12.71 USD per share. MarketBeat estimates the dividend yield at roughly 0.9%.

Crucially, the higher payout isn?t a stand-alone move. It accompanies the ongoing ?12 billion share repurchase program. Taken together, the actions illustrate ASML?s confidence in its cash generation and its willingness to return more capital to investors.

Stock movement despite the backdrop
The shares fell about 2% on the day, finishing at 1,406.87 USD, after dipping to an intraday low of 1,392.20 USD. Volume was reportedly around 33% below the typical level, indicating the move down wasn?t driven by heavy selling pressure.

From a technical perspective, the setup remains constructive. The price remains well above the 50-day moving average of 1,233.71 USD and the 200-day moving average of 1,022.55 USD. Year-to-date, MarketBeat notes a gain of roughly 96%.

High-NA EUV finds a place in Europe
Earlier this week, a development in ASML?s technology lineup added to the stock?s narrative: ASML?s High-NA EUV lithography system was integrated into imec?s new NanoIC pilot line in Europe. This development is viewed by Simply Wall St as a component of the European Chips Act?s broader objective to strengthen Europe?s role in advanced semiconductor manufacturing through 2030.

For ASML, the milestone enhances visibility for its latest technology within Europe?s top research and development ecosystem. imec?s ecosystem includes heavyweight users of cutting-edge process nodes, such as TSMC, Intel, and Samsung, according to the surrounding coverage.

What investors will monitor next
Looking ahead, investors will focus on two key items: the dividend record date on April 27 and the ongoing implementation of the ?12 billion buyback program, which continues to frame ASML?s shareholder-friendly capital policy.