June 06, 2026 a 03:31 pm
TXN: Dividend Analysis - Texas Instruments Incorporated
Texas Instruments Incorporated has a robust dividend profile, marked by consistency and growth. With a remarkable 55-year history of dividend payments, TXN demonstrates stability and resilience in volatile markets. Despite a relatively high payout ratio, the company showcases a steady cash flow, supporting its dividends.
📊 Overview
The financial landscape of Texas Instruments is illuminated by its sector position and dividend data. TXN operates within a lasting tradition of shareholder returns through dividends, a key focus for many investors.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 2% |
| Current Dividend Per Share | $5.50 |
| Dividend History | 55 years |
| Last Cut or Suspension | None |
📈 Dividend History
Understanding the dividend history provides insights into the consistency and reliability of payout strategies. This track record attracts income-focused investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | $2.84 |
| 2025 | $5.50 |
| 2024 | $5.26 |
| 2023 | $5.02 |
| 2022 | $4.69 |
📈 Dividend Growth
Analyzing dividend growth reveals how Texas Instruments manages its shareholder returns over time. The growth rates over three and five years highlight its performance trajectory.
| Time | Growth |
|---|---|
| 3 years | 5.45% |
| 5 years | 8.13% |
The average dividend growth is 8.13% over 5 years. This shows moderate but steady dividend growth.
📈 Payout Ratio
The payout ratios are crucial in assessing whether dividend payments are sustainable in the long run. High ratios might signal potential risk in maintaining current dividend levels.
| Key Figure | Ratio |
|---|---|
| EPS-based | 93.14% |
| Free Cash Flow-based | 134.51% |
The EPS payout ratio of 93.14% and the Free Cash Flow payout ratio of 134.51% suggest a potential strain on future dividend sustainability, indicating careful monitoring is necessary.
🗣️ Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency helps determine financial health and the ability to support operational needs.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 0.0087 | 0.0088 | 0.0165 |
| Earnings Yield | 0.0421 | 0.0281 | 0.0317 |
| CAPEX to Operating Cash Flow | 0.7899 | 0.7629 | 0.6361 |
| Stock-based Compensation to Revenue | 0.0207 | 0.0247 | 0.0237 |
| Free Cash Flow / Operating Cash Flow Ratio | 0.2101 | 0.2371 | 0.3639 |
The evaluated metrics suggest a solid cash flow management but highlight the need for improving cash flow coverage to bolster dividend payments.
💼 Balance Sheet & Leverage Analysis
A detailed examination of leverage and liquidity ratios reveals the company's ability to meet its financial commitments.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.726 | 0.890 | 0.946 |
| Debt-to-Assets | 0.379 | 0.424 | 0.445 |
| Debt-to-Capital | 0.421 | 0.471 | 0.486 |
| Net Debt to EBITDA | 1.033 | 1.570 | 1.474 |
| Current Ratio | 0 | 0 | 0 |
| Quick Ratio | 3.350 | 2.882 | 2.832 |
| Financial Leverage | 1.914 | 2.101 | 2.125 |
The leverage ratios reflect a progressively increasing debt profile, necessitating strategic oversight to maintain financial stability.
📈 Fundamental Strength & Profitability
Key profitability and return metrics illustrate the efficiency in using shareholder capital to generate earnings.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 38.53% | 28.39% | 30.73% |
| Return on Assets | 20.12% | 13.51% | 14.46% |
| Net Margin | 37.16% | 30.68% | 28.28% |
| EBIT Margin | 44.36% | 38.11% | 35.36% |
| EBITDA Margin | 51.42% | 48.21% | 46.67% |
| Gross Margin | 62.90% | 58.14% | 57.02% |
| R&D to Revenue | 10.63% | 12.52% | 11.78% |
While profitability ratios remain robust, declining trends signal the necessity for strategic improvement to maintain strong fundamentals.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 2 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
🗣️ Rating
Texas Instruments Incorporated ranks as a solid choice for dividend investors seeking stable returns with moderate growth potential. However, vigilance in monitoring the payout ratio and debt levels is advised to ensure sustained dividend health.
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