TE Connectivity Raises Quarterly Dividend 9.9% to $0.78

TE Connectivity plc raised its quarterly dividend 9.9% to $0.78 per share from $0.71, lifting the annualized rate to $3.12. Shares first traded ex-dividend at the higher rate on May 22, 2026, and the next ex-dividend date is November 20, 2026.

Why the dividend changed

TE did not provide a detailed rationale for the increase in its declaration. The board announced the higher regular dividend alongside an expansion of the share-repurchase authorization, signaling that the increase was part of a broader capital-return program rather than a response to a split, spinoff or special transaction. Shareholders also approved the annual-meeting proposals associated with the distribution. TE Connectivity's dividend announcement

Operating results provide the financial context. In the fiscal second quarter, TE reported growth in both Industrial Solutions and Transportation Solutions. Management said demand tied to artificial intelligence, next-generation transportation and electric-grid modernization helped drive record orders, while stronger operating performance supported cash generation. The company generated $1.3 billion of free cash flow in the first half and returned $1.2 billion to shareholders during that period. TE Connectivity's second-quarter results

The business strengthened further after the increase. Fiscal third-quarter sales reached $5.16 billion, with growth in both operating segments, while free cash flow totaled $2.2 billion for the first nine months. TE said it had returned $2.0 billion to shareholders year to date. Chief Executive Terrence Curtin linked the performance to broad demand for interconnect technologies and said the company continued to deliver on its cash-generation model and capital returns. TE Connectivity's third-quarter results

Dividend track record

The increase extends TE Connectivity's dividend-growth streak to 18 consecutive years. The five-year annualized dividend growth rate is 8.1%, and there is no recorded annual dividend cut in the supplied payment history.

Annual distributions rose from $1.90 per share in 2020 to $1.98 in 2021, $2.18 in 2022, $2.33 in 2023 and $2.54 in 2024. Those advances ranged from 4.2% to 10.1%, showing a pattern of regular increases rather than a fixed annual increment.

The 2025 entry totals $2.07 and is down 18.5% from 2024, but it contains only three payments. It therefore does not represent a reduction in the quarterly rate. The individual-payment record instead shows the rate advancing from $0.65 on August 23, 2024, to $0.71 on May 21, 2025, and then to $0.78 on May 22, 2026. The latest $0.78 rate was maintained for the August 21, 2026, ex-dividend date.

Is the dividend covered?

The dividend consumes 28% of earnings. That leaves most reported earnings outside the dividend commitment, providing room for reinvestment, acquisitions, debt service and share repurchases while maintaining the quarterly distribution.

SmarterDividends rates the dividend A, with a safety score of 94. An A denotes a very safe dividend, corresponding to a score between 80 and 100. The modest earnings payout, long growth record and demonstrated cash generation support that assessment, although the dividend remains subject to future board approval and operating conditions.

Yield and valuation

At a share price of $215.40, TE Connectivity's forward yield is 1.46%. That is above the Technology sector median forward yield of 1.38%, though the difference is limited. The stock's one-year price return is negative 16.8%.

SmarterDividends estimates fair value at $187.22 and assigns the shares a fair valuation verdict. The associated upside-to-fair-value reading is negative 9%. The valuation assessment and the dividend-safety grade measure different issues: one addresses the share price, while the other addresses the likelihood that the distribution can be sustained.

What to watch

The next scheduled ex-dividend date is November 20, 2026. Investors must own shares before that date to qualify under standard ex-dividend procedures. TE has kept the quarterly rate at $0.78 for the latest declared distribution. TE Connectivity's latest dividend declaration

Operationally, the next fiscal results will show whether order momentum in data centers, energy infrastructure and transportation continued into the fourth quarter. TE guided for another quarter of double-digit sales and earnings growth after its third-quarter report. Progress on the planned acquisition of Astrodyne TDI also bears watching because the transaction would expand TE's power-management and filtering portfolio within Industrial Solutions. Neither the guidance nor the acquisition changes the current dividend rate, but both affect the future cash demands competing with dividends and repurchases.