Texas Instruments declared a quarterly cash dividend of $1.42 per share on July 16, 2026, extending one of the most consistent payout records in the semiconductor sector. The dividend is payable August 11 to shareholders of record on July 31, and the stock currently yields approximately 1.9 percent based on recent trading levels near $290 per share.
The setup
Texas Instruments is a Dallas-based semiconductor company that designs and manufactures analog chips and embedded processors. The firm has raised its dividend annually for two decades, making it a staple for income-focused investors who want exposure to technology without the volatility of pure growth chip stocks.
The $1.42 quarterly payout annualizes to $5.68 per share. At the stock’s recent price of approximately $290, that produces a dividend yield of roughly 1.9 percent. The payout ratio sits near 94 to 97 percent of earnings, which is elevated but supported by the company’s strong cash generation.
Key numbers
| Metric | Value |
|---|---|
| Quarterly dividend | $1.42 per share |
| Annualized dividend | $5.68 per share |
| Recent stock price | ~$290 |
| Dividend yield | ~1.84–1.91% |
| Payout ratio | 94–97% |
| Declaration date | July 16, 2026 |
| Record date | July 31, 2026 |
| Payment date | August 11, 2026 |
Analyst outlook for Texas Instruments
Analysts at Stifel maintain a Buy rating on TXN with price targets of $340 and $360 in recent reports. Bank of America expects the semiconductor decline to prove temporary and has assigned a $370 target, suggesting roughly 28 percent upside from current levels.
Argus Research also rates TXN a Buy with a $320 target, while Rosenblatt has a $330 target. MarketScreener’s consensus from 36 analysts rates the stock Outperform with an average target of $303.31. The breadth of Buy ratings from multiple firms suggests analysts see recovery potential in the analog chip cycle.
Dollar-impact example for retirees
A retiree with a $400,000 portfolio who allocates 5 percent to Texas Instruments would hold $20,000 in the stock. At the current quarterly dividend of $1.42, that position would generate approximately $380 in quarterly dividend income, or roughly $1,520 annually before taxes.
This assumes the stock price and dividend remain stable. Investors should note that the semiconductor cycle can affect both share prices and payout growth, making position sizing important for conservative portfolios.
What to watch
Texas Instruments’ payout ratio above 90 percent leaves limited room for dividend growth if earnings remain flat. The company must either grow profits or accept a slower pace of payout increases.
Investors should also monitor the analog chip cycle, which tends to lag the broader semiconductor recovery. Bank of America and Stifel both expect TXN to lead the near-term rebound, but timing remains uncertain.
Bottom line
Texas Instruments remains a reliable dividend payer in the semiconductor space. The $1.42 quarterly dividend supports a yield near 1.9 percent, and multiple analysts see upside to the $320 to $370 range. Income investors seeking tech exposure with a steady payout should keep TXN on their watch list.
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