Texas Instruments Incorporated (NASDAQ:TXN) Increases Dividend to $1.52 Per Share

Key Points

• Texas Instruments raised its quarterly dividend 7% to $1.52 per share, payable November 10 to shareholders of record October 30. The annualized dividend is $5.68, yielding approximately 2.4%.
• The company has increased its dividend for 21 consecutive years, though its current 85.2% payout ratio leaves less room for error if earnings decline; analysts expect the future payout ratio to fall to 57.5%.
• Texas Instruments recently beat quarterly estimates with $2.14 in EPS and $5.46 billion in revenue, up 22.8% year over year. Shares opened at $258.14, down 1%, while institutional investors own nearly 85% of the stock.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) announced a quarterly dividend on Thursday, September 17th. Investors of record on Friday, October 30th will be given a dividend of 1.52 per share by the semiconductor company on Tuesday, November 10th. This represents a c) dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, October 30th. This is a 7.0% increase from Texas Instruments's previous quarterly dividend of $1.42.

Texas Instruments has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 21 years. Texas Instruments has a dividend payout ratio of 85.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Research analysts expect Texas Instruments to earn $9.87 per share next year, which means the company should continue to be able to cover its $5.68 annual dividend with an expected future payout ratio of 57.5%.

Texas Instruments Stock Down 1.0%

Shares of NASDAQ TXN opened at $258.14 on Friday. The company's 50-day simple moving average is $273.73 and its 200-day simple moving average is $264.24. Texas Instruments has a 52-week low of $152.73 and a 52-week high of $334.03. The firm has a market cap of $235.75 billion, a price-to-earnings ratio of 39.29, a price-to-earnings-growth ratio of 1.46 and a beta of 1.33. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72.

Texas Instruments (NASDAQ:TXN - Get Free Report) last released its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.91 by $0.23. The business had revenue of $5.46 billion during the quarter, compared to analyst estimates of $5.26 billion. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%. The company's revenue for the quarter was up 22.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.41 earnings per share. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. Equities analysts predict that Texas Instruments will post 8.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, VP Tsedeniya Abraham sold 7,000 shares of the stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $264.63, for a total value of $1,852,410.00. Following the completion of the transaction, the vice president directly owned 23,181 shares in the company, valued at approximately $6,134,388.03. This represents a 23.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.60% of the company's stock.

Hedge Funds Weigh In On Texas Instruments

A number of hedge funds have recently modified their holdings of the business. HBW Advisory Services LLC grew its position in Texas Instruments by 2.2% in the 1st quarter. HBW Advisory Services LLC now owns 1,730 shares of the semiconductor company's stock valued at $336,000 after buying an additional 37 shares during the last quarter. Montz Harcus Wealth Management LLC increased its stake in Texas Instruments by 2.9% in the 1st quarter. Montz Harcus Wealth Management LLC now owns 1,338 shares of the semiconductor company's stock valued at $260,000 after buying an additional 38 shares during the period. Livforsakringsbolaget Skandia Omsesidigt raised its position in Texas Instruments by 0.6% during the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 5,960 shares of the semiconductor company's stock worth $1,157,000 after buying an additional 38 shares during the last quarter. Absher Wealth Management LLC lifted its stake in shares of Texas Instruments by 1.0% in the 1st quarter. Absher Wealth Management LLC now owns 4,223 shares of the semiconductor company's stock worth $820,000 after acquiring an additional 42 shares during the period. Finally, Severin Investments LLC boosted its holdings in shares of Texas Instruments by 3.3% in the first quarter. Severin Investments LLC now owns 1,349 shares of the semiconductor company's stock valued at $262,000 after acquiring an additional 43 shares in the last quarter. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

About Texas Instruments

Texas Instruments Incorporated NASDAQ: TXN designs and manufactures semiconductors used in industrial, automotive, personal electronics, communications equipment and enterprise systems. The company's portfolio is led by analog chips, which manage power, sensing and signal processing, and embedded processing products, including microcontrollers and processors that control electronic systems.

Texas Instruments also develops products such as data converters, amplifiers, interface and connectivity devices, motor drivers, power-management semiconductors and calculators.

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