Teradyne (TER) DIvidends Date & History

Key Takeaways

• Teradyne pays a quarterly dividend of $0.13 per share, for an annualized total of $0.52.
• Current dividend yield stands at approximately 0.14% to 0.15%.
• Payout ratio remains very low at around 9%, supporting strong sustainability.
• Dividend has grown consistently, with recent increases and multi-year positive trends.
• Low yield positions TER as a dividend growth candidate rather than a high-income stock.
• Strong free cash flow coverage provides ample room for future dividend increases.

Dividend Overview

Teradyne, Inc. (TER) follows a quarterly dividend payment schedule. The company currently distributes $0.13 per share each quarter, resulting in an annualized dividend of $0.52. This produces a dividend yield of roughly 0.14% to 0.15%, based on recent share prices. TER is best characterized as a modest-yield dividend stock with a focus on consistent growth rather than high current income. The low payout supports long-term sustainability in the competitive semiconductor equipment sector.

Dividend History and Growth

Teradyne has maintained a quarterly dividend program with steady increases over time. Recent payments include $0.13 per share in May 2026 and February 2026, following earlier amounts of $0.12. Annualized growth rates show positive momentum: approximately 2.08% over the past 12 months, 3.65% over three years, and 4.14% over five years. The company has avoided dividend cuts, demonstrating a commitment to progressive payouts aligned with earnings performance in the technology hardware industry.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable. Teradyne’s payout ratio of about 9% leaves substantial earnings available for reinvestment or future increases. Free cash flow coverage is robust, and the company maintains a solid balance sheet with manageable debt levels typical of established semiconductor firms. This conservative approach reduces risk of dividend reductions even during industry cycles, positioning TER favorably for ongoing payments.

Dividend Compared to Industry Peers

Within the semiconductor and technology hardware sector, Teradyne’s dividend yield of 0.14% to 0.15% aligns with many peers that prioritize growth over high distributions. Competitors often report similarly modest yields, reflecting capital-intensive operations and reinvestment needs. TER stands out for its low payout ratio, which offers greater flexibility compared to higher-yielding names in broader technology or industrials sectors.

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Is This Stock Attractive for Dividend Investors?

Teradyne may appeal to dividend growth investors seeking modest current income combined with potential for future increases. Its low payout ratio and consistent payment history suit long-term investors focused on capital appreciation alongside gradually rising dividends. Conservative income investors might find the yield too low for immediate needs, while those prioritizing high yields could look elsewhere. The stock fits portfolios emphasizing sustainability and sector exposure in semiconductors rather than maximum current yield.

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