Teradyne (TER) DIvidends Date & History

Key Takeaways

• Teradyne (TER) offers a modest dividend yield of 0.15% with an annual payout of $0.52 per share.
• Quarterly dividends paid consistently, with the most recent ex-dividend date February 13, 2026, for $0.13 per share.
• Low payout ratio of approximately 14% indicates excellent earnings coverage (EPS TTM $3.48).
• Dividend growth of 2.08% over the past year; recent increase from $0.12 to $0.13 per share.
• Supported by robust free cash flow of $270.63 million TTM and minimal debt (debt-to-equity 10.13%).
• Sustainable profile prioritizes growth in semiconductor testing and robotics over high yields.

Dividend Overview

Teradyne (TER), a leader in automated test systems for semiconductors and robotics solutions, maintains a modest dividend policy focused on sustainability rather than high yields. The current dividend yield stands at 0.15%, based on an annual payout of $0.52 per share delivered quarterly. The latest quarterly dividend of $0.13 per share had an ex-dividend date of February 13, 2026, with payment on March 13, 2026. This low-yield approach reflects Teradyne's emphasis as a growth-oriented company in the cyclical semiconductor industry, where reinvestment in R&D and expansion takes precedence. While not a high-yield stock, its consistent payments appeal to long-term holders seeking supplemental income alongside capital appreciation potential.

Dividend History and Growth

Teradyne has paid quarterly dividends consistently for over a decade, with gradual increases demonstrating commitment to shareholders. The dividend per share rose from $0.11 in 2023 to $0.12 in 2024 and 2025, reaching $0.13 in early 2026—an 8% hike from the prior quarter. Annual growth over the past year is 2.08%, with a 5-year average around 3.71%. Historical data shows steady progression: $0.10 in 2021, $0.44 annually in 2024, and $0.48 in 2025, trending toward $0.52 forward. No cuts have occurred recently, underscoring reliability amid semiconductor cycles. This modest growth aligns with Teradyne's strategy of balancing payouts with investments in high-demand areas like AI-driven chip testing.

Dividend Sustainability and Payout Ratio

Teradyne's dividend is highly sustainable, backed by a payout ratio of 14%—well below the 75% threshold for caution. With TTM earnings per share (EPS) at $3.48, the $0.52 annual dividend consumes only a fraction of profits. Free cash flow (FCF) TTM of $270.63 million provides ample coverage, equivalent to over 9% of cash flow allocated to dividends. Balance sheet strength includes $322 million in cash and short-term investments against $283 million in total debt, yielding a low debt-to-equity ratio of 10.13%. Operating cash flow easily services obligations, with no signs of strain. This conservative profile supports ongoing payments even in industry downturns.

Dividend Compared to Industry Peers

In the semiconductor equipment sector, Teradyne's 0.15% yield is low relative to peers. KLAC offers 0.53%, AMAT 0.63%, and LRCX 0.49%, with industry averages around 0.4-0.5%. Smaller peers like Amkor Technology (AMKR) provide higher yields near 0.5-1%, but Teradyne's focus on testing equipment justifies its modest payout amid growth investments. Peers share low payout ratios (15-22%), prioritizing share buybacks and R&D. Teradyne's yield lags but matches its profile as a growth stock in a low-yield sector.

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Is This Stock Attractive for Dividend Investors?

Teradyne (TER) suits dividend investors prioritizing safety and growth over high current income. Its ultra-low payout ratio and strong FCF coverage make it ideal for conservative, long-term holders who value stability in volatile tech sectors. Growth-oriented dividend investors may appreciate the consistent quarterly payments and modest increases, complemented by robust buybacks (shareholder yield ~2.36%). However, income seekers chasing yields above 2-3% will find it lacking compared to utilities or REITs. In semiconductors, where cycles drive volatility, Teradyne's balance sheet resilience appeals to those balancing modest dividends with AI-fueled appreciation potential. Balanced portfolios blending growth and income could allocate here for diversification, but high-yield chasers may look elsewhere.

Disclaimer

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