Texas Instruments (TXN) DIvidends Date & History

Key Takeaways

• Texas Instruments (TXN) pays a quarterly dividend of $1.42 per share, for an annualized total of $5.68.
• The current dividend yield stands at approximately 1.9%.
• The company has raised its dividend for 22 consecutive years.
• The payout ratio is elevated near 94%, indicating limited room for further increases without earnings growth.
• Dividends are well-covered by free cash flow despite the high payout ratio.
• The stock appeals to investors seeking steady income with moderate growth potential in the semiconductor sector.

Dividend Overview

Texas Instruments (TXN) follows a conservative dividend policy focused on consistent quarterly payments and modest annual increases. The company distributes dividends four times per year, with each payment currently set at $1.42 per share. This results in an annual dividend of $5.68 and a forward yield of roughly 1.9%. Texas Instruments (TXN) is best classified as a dividend growth stock rather than a high-yield name, offering reliable income combined with a long track record of annual raises. The approach suits investors who value predictability over maximum current yield.

Dividend History and Growth

Texas Instruments (TXN) has paid dividends since 1974 and has increased the payout every year for the past 22 years. The most recent increase occurred in 2025, when the quarterly dividend rose 4%. Historical data show steady compounding, with average annual growth rates of approximately 4.5% over the past 12 months and higher rates over longer periods. Payments have remained uninterrupted, reflecting disciplined capital allocation even through industry cycles. The company continues to prioritize dividend growth alongside investments in manufacturing capacity.

Dividend Sustainability and Payout Ratio

The dividend payout ratio for Texas Instruments (TXN) currently hovers near 94%, which is high relative to many technology peers. This leaves limited margin for error if earnings decline. However, strong free cash flow generation provides solid coverage for the dividend. The company maintains a conservative balance sheet with manageable debt levels, supporting long-term sustainability. Management has demonstrated commitment to the dividend through multiple economic cycles, suggesting the payout is likely to remain secure provided semiconductor demand remains stable.

Dividend Compared to Industry Peers

Within the semiconductor industry, dividend yields are typically modest. Many peers offer yields between 0.5% and 2.0%, with Texas Instruments (TXN) positioned near the higher end of that range. Its combination of yield and 22-year growth streak compares favorably to larger chipmakers that often prioritize share buybacks over dividends. Relative to the broader technology sector average of around 1.4%, Texas Instruments (TXN) delivers an above-average income stream while maintaining a growth-oriented profile.

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Is This Stock Attractive for Dividend Investors?

Texas Instruments (TXN) may suit income-oriented investors who seek reliable quarterly payments and a history of annual dividend growth. The stock could also appeal to conservative long-term investors comfortable with a moderate yield and exposure to the semiconductor cycle. Dividend growth investors may find the 22-year streak attractive, though the elevated payout ratio warrants monitoring of earnings trends. The company does not target high-yield investors, as its yield remains below many traditional income names. Overall, Texas Instruments (TXN) offers a balanced profile for those prioritizing consistency over maximum current income.

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