Texas Instruments (TXN) DIvidends Date & History

Key Takeaways

• Texas Instruments (TXN) offers a 2.11% dividend yield with an annual payout of $5.68 per share.
• The company has raised its dividend for 22 consecutive years, supporting its status as a dividend growth stock.
• Quarterly payments of $1.42 reflect a stable policy focused on growth and sustainability.
• Payout ratio near 86% indicates earnings coverage, though recent periods have approached or exceeded 100%.
• Free cash flow generation provides a buffer for dividend sustainability amid industry cycles.
• Yield stands above many semiconductor peers, appealing to income-oriented investors seeking moderate growth.

Dividend Overview

Texas Instruments (TXN) maintains a quarterly dividend policy with payments of $1.42 per share, equating to an annualized $5.68 and a trailing yield of 2.11%. The most recent ex-dividend date was July 31, 2026, with payment on August 11, 2026. The firm positions its dividend for broad investor appeal through consistent growth and long-term sustainability rather than high yield. It qualifies as a dividend growth stock, emphasizing annual increases over high current income, with a track record of reliability in the semiconductor sector.

Dividend History and Growth

Texas Instruments (TXN) has paid dividends since 1994 and increased them annually for 22 straight years. The quarterly payout rose from $1.30 in early 2024 to $1.36 later that year and $1.42 in 2025-2026, reflecting roughly 4% to 8% annual growth in recent periods. This steady progression aligns with a strategy of returning free cash flow to shareholders while funding manufacturing investments. No dividend cuts have occurred in decades, underscoring commitment to progressive distributions despite semiconductor market volatility.

Dividend Sustainability and Payout Ratio

The payout ratio for Texas Instruments (TXN) stands near 86% on a trailing basis, with some quarterly readings approaching or exceeding 100% amid earnings fluctuations. Earnings and free cash flow coverage remain adequate overall, supported by strong cash generation from operations exceeding $8 billion annually in recent periods. Debt levels are manageable relative to cash reserves, and the company targets returning all free cash flow to shareholders over time. This framework supports dividend continuity, though elevated ratios warrant monitoring during downturns in industrial or automotive demand.

Dividend Compared to Industry Peers

Within the semiconductor industry, Texas Instruments (TXN) yield of 2.11% exceeds many peers, including NVIDIA at 0.36%, Broadcom at 0.67%, and Micron Technology at 0.05%. Analog Devices and Qualcomm offer comparable or slightly higher yields around 1-2%, while several high-growth names distribute little or nothing. Texas Instruments (TXN) stands out for its combination of yield and multi-year growth streak, positioning it as a higher-income option in a sector often focused on capital appreciation.

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Is This Stock Attractive for Dividend Investors?

Texas Instruments (TXN) may suit dividend growth investors seeking moderate yields with annual increases and a proven multi-year streak. Its quarterly schedule and focus on sustainability appeal to those prioritizing consistency over high income. Long-term holders in conservative portfolios could value the balance of dividend returns and semiconductor exposure, particularly given free cash flow support. Income-focused investors might find the 2.11% yield attractive relative to sector averages, though elevated payout ratios in certain periods suggest monitoring earnings trends. The stock fits balanced approaches emphasizing both growth and income without aggressive high-yield strategies.

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