© Reuters. Micron Technology’s solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis/Files
(Reuters) – Micron Technology Inc (NASDAQ:) on Monday declared a quarterly dividend of 10 cents per share.
The initial quarterly dividend will be payable in cash on Oct. 18 to shareholders of record as of the close of business on Oct. 1, Micron said.
Micron makes DRAM and NAND memory chips, which are necessary commodities for nearly all computing systems and whose price can fluctuate widely based on global supply and demand. Since taking over the company in 2017, Chief Executive Sanjay Mehrotra has sought to develop more profitable products that are less prone to price swings.
Micron’s largest two competitors for memory chips – Samsung Electronics (OTC:) Co Ltd and SK Hynix Inc – both pay dividends to shareholders. Micron also said on Monday it has bought back about $4 billion of shares since starting a repurchase program in 2018.
Micron’s changes to its capital return program come as the company is preparing to ramp up spending for a new generation of chips.
Micron in June said its capital expenditures for fiscal 2021 would rise above $9.5 billion, partly driven by pre-payments as it starts to acquire extreme ultraviolet lithography (EUV) machines from Dutch maker ASML Holding (NASDAQ:) NV. The machines are necessary for making the most cutting-edge chips but can cost more than $100 million each.
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