Texas Instruments Raises Dividend 7.0% to $1.52

Texas Instruments increased its quarterly dividend 7.0% to $1.52 a share from $1.42. The next ex-dividend date is October 30, 2026, and payment is scheduled for November 10, 2026, bringing the annual dividend to $6.08 a share.

Why the dividend changed

Texas Instruments said the increase supports its long-term objective of providing a sustainable, growing dividend and reflects its commitment to return all free cash flow to owners over time. The higher payment is an increase in the regular quarterly dividend, not a special distribution or an adjustment related to a stock split, merger or spin-off. Texas Instruments’ dividend announcement

Recent operating results provide the immediate business context. Third-quarter revenue was $6.06 billion, net income was $2.43 billion and earnings per share were $2.62. Revenue increased across the industrial, automotive and data-center markets, according to Chief Executive Haviv Ilan. Texas Instruments reported trailing-12-month operating cash flow of $9.9 billion and free cash flow of $8.4 billion, with the latter including benefits from U.S. CHIPS Act incentives. Texas Instruments’ third-quarter results

The cash-flow improvement came while Texas Instruments continued investing in manufacturing capacity. Capital expenditures were $2.6 billion over the latest 12 months. The company’s capital-management framework prioritizes long-term free-cash-flow growth, manufacturing investment and returning free cash flow through dividends and repurchases. Texas Instruments’ 2026 capital-management presentation

Capital allocation also includes the pending acquisition of Silicon Labs. Texas Instruments agreed to acquire the wireless-chip company in an all-cash transaction valued at about $7.5 billion, funded with cash and debt. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other conditions, while Texas Instruments said it remains committed to its existing capital-return strategy. Texas Instruments’ Silicon Labs announcement

Dividend track record

The latest increase follows four consecutive payments of $1.42, with ex-dividend dates running from October 31, 2025, through July 31, 2026. Before that, the company paid $1.36 for four consecutive quarters. The payment pattern shows that Texas Instruments typically resets its regular dividend and then holds that rate for four quarters.

Annual payments rose from $3.72 a share in 2020 to $4.21 in 2021, an increase of 13.2%. The total advanced to $4.69 in 2022, $5.02 in 2023, $5.26 in 2024 and $5.50 in 2025. Annual growth slowed from 11.4% in 2022 to 7.0% in 2023, 4.8% in 2024 and 4.6% in 2025. The current 7.0% increase therefore represents a faster step-up than the previous two annual changes, though it remains below the 8.6% annual growth rate over five years.

Texas Instruments says the increase marks 23 consecutive years of dividend growth. The available annual payment history shows no annual cut, making the current action an extension of the established pattern rather than a restoration after a reduction. Texas Instruments’ dividend announcement

Is the dividend covered?

The dividend consumes 86% of earnings. That ratio indicates relatively tight earnings coverage because a limited portion of reported profit remains after the dividend obligation. It makes continued cash generation important, particularly while the company funds manufacturing investments and prepares for the Silicon Labs transaction.

SmarterDividends rates the dividend A with a safety score of 85. That grade means very safe, within the score range of 80-100. The assessment indicates that the dividend’s overall durability remains strong despite the elevated earnings payout ratio. The latest improvement in company-reported free cash flow provides additional operating context, although cash flow can vary with capital spending and CHIPS Act incentives.

Yield and valuation

At a share price of $298.12, the annual dividend produces a forward yield of 2.04%. That is above the Technology sector median forward yield of 1.32%. A holding of 100 shares generates annual dividend income of $608.00 at the new rate.

The shares have recorded a 69.2% gain over one year. SmarterDividends estimates fair value at $151.39 and classifies the stock as overvalued, with 47% downside to fair value. The figures separate the dividend’s above-sector yield from the valuation attached to obtaining that income.

What to watch

The immediate dates are October 30, 2026, the next ex-dividend date, and November 10, 2026, the scheduled payment date. Investors must also monitor whether earnings and free cash flow continue to provide room for an 86% earnings payout ratio as capital spending proceeds.

Texas Instruments guided for fourth-quarter revenue of $5.80 billion to $6.30 billion and earnings per share of $2.45 to $2.79. The next results will show how demand in industrial, automotive and data-center markets developed against that range. Texas Instruments’ third-quarter results

The pending Silicon Labs acquisition is the other major capital-allocation item. Regulatory progress, financing and the expected first-half 2027 closing timetable will determine how the transaction interacts with Texas Instruments’ cash balances, debt and commitment to returning free cash flow.