Texas Instruments Incorporated (NASDAQ:TXN) Raises Dividend to $1.42 Per Share

Key Points

• Texas Instruments announced a quarterly dividend increase to $1.42 per share, reflecting a 4.4% rise from the previous quarter's dividend of $1.36, with a yield of 3.1%.
• The company's expected earnings per share for next year is projected at $6.44, indicating that the dividend should remain covered, despite a rising payout ratio.
• Texas Instruments shares are trading at $181.62, with a market capitalization of $165.12 billion and a mixed sentiment from analysts regarding future price targets.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) declared a quarterly dividend on Thursday, September 18th, RTT News reports. Investors of record on Friday, October 31st will be paid a dividend of 1.42 per share by the semiconductor company on Wednesday, November 12th. This represents a c) dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Friday, October 31st. This is a 4.4% increase from Texas Instruments's previous quarterly dividend of $1.36.

Texas Instruments has a payout ratio of 81.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities analysts expect Texas Instruments to earn $6.44 per share next year, which means the company should continue to be able to cover its $5.44 annual dividend with an expected future payout ratio of 84.5%.

Texas Instruments Stock Performance

NASDAQ:TXN traded down $2.25 during mid-day trading on Friday, reaching $179.37. The company's stock had a trading volume of 16,187,326 shares, compared to its average volume of 6,670,172. Texas Instruments has a 12-month low of $139.95 and a 12-month high of $221.69. The firm's fifty day moving average price is $194.96 and its two-hundred day moving average price is $185.97. The company has a current ratio of 5.81, a quick ratio of 3.88 and a debt-to-equity ratio of 0.86. The stock has a market cap of $163.07 billion, a P/E ratio of 32.85, a PEG ratio of 2.97 and a beta of 1.02.

Texas Instruments (NASDAQ:TXN - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The semiconductor company reported $1.41 earnings per share for the quarter, topping analysts' consensus estimates of $1.32 by $0.09. Texas Instruments had a return on equity of 30.10% and a net margin of 30.23%.The business had revenue of $4.45 billion during the quarter, compared to analyst estimates of $4.31 billion. During the same quarter in the previous year, the firm earned $1.17 EPS. Texas Instruments's revenue was up 16.4% on a year-over-year basis. Texas Instruments has set its Q3 2025 guidance at 1.360-1.600 EPS. On average, equities analysts forecast that Texas Instruments will post 5.35 EPS for the current fiscal year.

Texas Instruments Company Profile

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products.