Texas Instruments Incorporated (TXN) will raise its quarterly dividend by 13.3 percent to $1.02 per share in 2020. This follows a 16.9 percent dividend hike to $0.90 per share in 2019 and will markt the 9th consecutive year of double digit dividend hikes by the semiconductor company.
The next dividend will be paid on November 16, 2020, to stockholders of record on October 30, 2020, contingent upon formal declaration by the board of directors at its regular meeting in October, according to the company in the press release announcing this new dividend hike.
A new annual dividend rate of $4.08 per share yields 2.9% at a stock price of $140.40. With 17 consecutive years of dividend growth Texas Instruments follows Microsoft, another big technology company that announced its 18th consecutive year of dividend increases earlier this week.
In its press release dated September 18, 2020, Texas Instruments mentions that this dividend increase is an integral piece of TI's disciplined approach to capital management and reflects the company's continued strength in free cash flow generation and its commitment to return excess cash to stockholders. In the 12-month period ending June 2020, TI has paid 56% of its free cash flow in dividends. Texas Instruments also notes that the company has a proven track record of returning cash to its shareholders. Today's announcement marks 17 consecutive years of dividend increases. In addition, as of second quarter 2020, the company has reduced its outstanding shares by 47% through its consistent share repurchases since the end of 2004.
According to our own calculations Texas Instruments will now pay an annual dividend of $3.75 billion to its shareholders. Last year the company bought back 2.7 percent of its outstanding shares, and year-to-date Texas Instruments has retired almost 2 percent of of its own shares, according to our own estimates and calculations.
Texas Instruments Incorporated (TI) is a global semiconductor design and manufacturing company that develops analog ICs and embedded processors. The company's Analog segment's product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). The company's Embedded Processing segment's product line includes Processor, Microcontrollers and Connectivity. Texas Instruments has paid uninterrupted dividends to its shareholders since it declared its first dividend in April 1962.