20 Best Performing Dividend Stocks in 2025

17. Applied Materials, Inc. (NASDAQ:AMAT)

YTD Return as of December 30: 59.4%

Dividend Yield as of December 30: 0.71%

Applied Materials, Inc. (NASDAQ:AMAT) is among the best-performing stocks that pay dividends.

On December 18, B. Riley raised its price target on Applied Materials, Inc. (NASDAQ:AMAT) to $305 from $270 and kept a Buy rating on the stock. In a research note, the analyst pointed to the company’s broad exposure across deposition, etch, and chemical mechanical planarization. That range of capabilities places Applied Materials in a strong position to benefit from rising investment in HBM and advanced DRAM capacity.

Applied Materials, Inc. (NASDAQ:AMAT) is the world’s largest supplier of semiconductor manufacturing equipment. Its tools sit at the core of the chipmaking process, supporting advanced logic, memory, and display technologies. That central role has tied the company closely to the ongoing AI and data center build-out. When chipmakers expand, AMAT is usually part of the story.

Several factors helped explain the move in the stock. Demand linked to AI continues to rise, lifting spending on advanced memory and logic chips. That demand is showing up in results as the company posted record revenue and non-GAAP EPS for fiscal 2025, a milestone that stood out to investors. Applied Materials also rolled out new semiconductor manufacturing systems and advanced packaging tools during the year, reinforcing its technology pipeline. At the same time, it held onto its leadership position in the wafer fabrication equipment market, an area where scale and execution matter.

There were headwinds as well. US export restrictions limited access to the Chinese market, which remains an important region for semiconductor equipment demand. Even with that constraint, Applied Materials, Inc. (NASDAQ:AMAT)’s global footprint and exposure to leading-edge technologies continued to support the broader investment case.