June 13, 2026 a 12:46 pm
TXN: Dividend Analysis - Texas Instruments Incorporated
Texas Instruments has sustained its position as a leading dividend-paying stock with an impressive dividend history. With over 55 years of consecutive dividend payments and a stable yield of 2%, TXN remains a popular choice for income-focused investors. Its robust financial health and strategic capital allocation continue to support its reliable dividends.
📊 Overview
Texas Instruments operates within the Semiconductors sector and offers a dividend yield of 2%. The current dividend per share stands at 5.50 USD, with a 55-year history of uninterrupted and growing dividend payments, underscoring TXN's commitment to returning capital to shareholders.
| Metric | Details |
|---|---|
| Sector | Semiconductors |
| Dividend Yield | 2% |
| Current Dividend per Share | 5.50 USD |
| Dividend History | 55 years |
| Last Cut or Suspension | None |
📈 Dividend History
Texas Instruments has a long-standing history of dividend payments, which provides insight into its operational resilience and commitment to rewarding shareholders. Consistent dividend growth is a clear indicator of this commitment and reinforces investor trust.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 2.84 |
| 2025 | 5.50 |
| 2024 | 5.26 |
| 2023 | 5.02 |
| 2022 | 4.69 |
📉 Dividend Growth
Evaluating the dividend growth rate allows investors to understand the consistency and sustainability of dividend payments over time. Texas Instruments showcases a 5-year growth rate of approximately 8.13%, indicating a moderate but steady pattern.
| 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 ratio is critical to assessing dividend coverage and potential. Texas Instruments' EPS-based payout ratio is approximately 93.14%, and FCF-based ratio is around 134.51%, suggesting a high level of income return to shareholders with potential coverage concerns.
| Key Figure | Ratio |
|---|---|
| EPS-based | 93.14% |
| Free Cash Flow-based | 134.51% |
A high payout ratio indicates ongoing prioritization of shareholder returns but necessitates caution as it suggests potential constraints on future growth due to less retained income.
📊 Cashflow & Capital Efficiency
Texas Instruments demonstrates a proficient capital allocation strategy, vital for sustaining operations and investing in future growth opportunities. Key metrics reveal modest yields against capital deployment metrics, indicating effective use of cash flows.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 1.65% | 0.88% | 0.87% |
| Earnings Yield | 3.17% | 2.81% | 4.21% |
| CAPEX to Operating Cash Flow | 63.61% | 76.29% | 78.99% |
| Stock-based Compensation to Revenue | 2.37% | 2.47% | 2.07% |
| Free Cash Flow / Operating Cash Flow Ratio | 36.39% | 23.71% | 21.01% |
These figures exhibit a well-managed approach to capital spending and operational cash flow utilization, contributing to sustained financial stability and shareholder value.
📈 Balance Sheet & Leverage Analysis
Understanding leverage and liquidity metrics is crucial for assessing a company's ability to meet its liabilities and manage financial stress. TXN's historical performance illustrates a solid balance sheet structure.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 94.58% | 88.98% | 72.60% |
| Debt-to-Assets | 44.50% | 42.36% | 37.92% |
| Debt-to-Capital | 48.61% | 47.08% | 42.06% |
| Net Debt to EBITDA | 1.47 | 1.57 | 1.03 |
| Current Ratio | 4.35 | 4.12 | 4.55 |
| Quick Ratio | 2.83 | 2.88 | 3.35 |
| Financial Leverage | 2.13 | 2.10 | 1.91 |
TXN's leverage metrics suggest prudent management of debt obligations, supported by robust liquidity indicators that underpin financial resilience.
📉 Fundamental Strength & Profitability
Profitability measures are essential for evaluating a company's operational efficiency and capacity to generate returns. Key ratios highlight Texas Instruments' strong fundamentals, particularly impressive margins and returns.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 30.73% | 28.39% | 38.53% |
| Return on Assets | 14.46% | 13.51% | 20.12% |
| Margins: Net | 28.28% | 30.68% | 37.16% |
| EBIT | 35.36% | 38.11% | 44.36% |
| EBITDA | 46.67% | 48.21% | 51.42% |
| Gross | 57.02% | 58.14% | 62.90% |
| Research & Development to Revenue | 11.78% | 12.52% | 10.63% |
Texas Instruments displays compelling profitability metrics, with high returns and margins establishing its superior market position and efficient cost management.
Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 3 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 35/40
🗣️ Rating
Smart Data Insight
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