KLA's board has raised the company's quarterly dividend by 21%, to $2.30 from $1.90, and added $7 billion to its share-repurchase program.

The chip-manufacturing equipment supplier's new quarterly payout, equal to $9.20 a year, represents an annual yield of about 0.63% based on Wednesday's closing price of $1,465, up from 0.52%.

The Milpitas, Calif., company said the new buyback adds to the roughly $3.94 billion remaining at the end of last year from prior authorizations.

KLA, which had about 131.1 million shares outstanding as of Jan. 26, sports a market capitalization topping $190 billion.

The company shelled out more than $1.1 billion to buy back around 1.08 million shares during the first six months of its current fiscal year.

KLA also reaffirmed its guidance for its fiscal third quarter, which ends March 31.