Texas Instruments Incorporated (NASDAQ:TXN) Plans Quarterly Dividend of $1.42

Key Points

• Texas Instruments announced a quarterly dividend of $1.42 per share, with the ex-dividend date and record date both set for July 31 and payment scheduled for August 11. The dividend implies an annualized yield of about 2.0%.
• The company has raised its dividend for 21 straight years, and analysts say its payout should remain covered by earnings, with expected future payout ratio around 64%.
• Texas Instruments recently beat quarterly EPS expectations with $1.68 per share, though revenue came in slightly below forecasts; the stock was also down 3.3% in Friday trading.

Texas Instruments Incorporated (NASDAQ:TXN - Get Free Report) announced a quarterly dividend on Thursday, July 16th. Stockholders of record on Friday, July 31st will be given a dividend of 1.42 per share by the semiconductor company on Tuesday, August 11th. This represents a c) dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, July 31st.

Texas Instruments has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 21 consecutive years. Texas Instruments has a dividend payout ratio of 85.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect Texas Instruments to earn $8.88 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 64.0%.

Texas Instruments Stock Down 3.3%

Shares of NASDAQ:TXN opened at $291.22 on Friday. The company has a current ratio of 4.46, a quick ratio of 2.94 and a debt-to-equity ratio of 0.77. The company has a fifty day simple moving average of $302.66 and a 200 day simple moving average of $243.18. The firm has a market cap of $265.04 billion, a PE ratio of 49.87, a price-to-earnings-growth ratio of 1.51 and a beta of 1.32. Texas Instruments has a 12-month low of $152.73 and a 12-month high of $334.03.

Texas Instruments (NASDAQ:TXN - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The semiconductor company reported $1.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.37 by $0.31. The firm had revenue of $4.83 billion for the quarter, compared to analysts' expectations of $4.85 billion. Texas Instruments had a net margin of 29.11% and a return on equity of 32.49%. The firm's quarterly revenue was up 18.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.23 earnings per share. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS. On average, equities research analysts anticipate that Texas Instruments will post 7.69 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Mohammad Yunus sold 51,098 shares of the business's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $270.44, for a total transaction of $13,818,943.12. Following the completion of the sale, the vice president owned 52,856 shares of the company's stock, valued at $14,294,376.64. This represents a 49.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Mark T. Roberts sold 28,080 shares of the stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $280.34, for a total transaction of $7,871,947.20. Following the sale, the vice president owned 53,809 shares in the company, valued at approximately $15,084,815.06. This trade represents a 34.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 303,475 shares of company stock worth $85,666,638. Corporate insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. High Point Wealth Management LLC bought a new position in shares of Texas Instruments during the fourth quarter worth about $25,000. Strategic Wealth Investment Group LLC bought a new stake in Texas Instruments in the 2nd quarter valued at about $25,000. Advocate Investing Services LLC acquired a new position in Texas Instruments during the 4th quarter valued at about $25,000. Ares Financial Consulting LLC acquired a new position in Texas Instruments during the 4th quarter valued at about $26,000. Finally, Cornerstone Financial Management LLC bought a new position in Texas Instruments in the 4th quarter worth about $27,000. Institutional investors and hedge funds own 84.99% of the company's stock.

Texas Instruments Company Profile

Texas Instruments Inc NASDAQ: TXN is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company's products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI's business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI's product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.

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