Texas Instruments has raised its quarterly dividend 7 percent to $1.52 per share, extending one of the longest increase streaks in the semiconductor industry to 23 consecutive years. The hike lands as the chipmaker’s stock closed the week near $266, up more than 3 percent on the announcement.
The setup
The Dallas-based company said September 17, 2026 that the quarterly cash dividend will rise from $1.42 to $1.52 per share, or $6.08 annualized. The dividend is payable November 10, 2026 to stockholders of record on October 30, 2026, contingent on formal declaration by the board at its regular October meeting.
TXN framed the increase as consistent with its long-standing objective of returning all free cash flow to owners over time. That commitment has made the stock a core holding for dividend growth investors who want chip-sector exposure without the volatility of pure-play AI names.
Key numbers for the TXN dividend
| Metric | Value |
|---|---|
| New quarterly dividend | $1.52 per share |
| Previous quarterly dividend | $1.42 per share |
| Annualized dividend | $6.08 per share |
| Increase | 7 percent |
| Consecutive years of increases | 23 |
| Share price at the September 18 close | $266.64 |
| Indicated yield | About 2.3 percent |
| Annual revenue | $17.68 billion |
| Net profit | $4.97 billion |
At the September 18 close, a $100,000 position buys roughly 375 shares and produces about $2,280 in annual dividend income. The yield is modest next to utilities or energy names, but the growth rate compounds: the payout has risen every year for more than two decades through multiple semiconductor down cycles.
What to watch
The October board meeting is the technical formality that finalizes the payment. More important for income investors is the demand backdrop in analog and embedded processing, TXN’s two core markets, where a cyclical recovery would support continued double-digit payout growth.
Interest rates matter here too. The 10-year Treasury yield ended last week near 5 percent, its highest level since 2007, which raises the bar for any equity yield. A 2.3 percent starting yield with 7 percent annual growth takes about a decade to double the income stream, so patience is part of the thesis.
Capital spending on new fabrication capacity is the other variable. Heavier investment slows free cash flow growth in the short run, and TXN has been explicit that it manages the dividend around long-term cash generation rather than any single year.
Analyst outlook for Texas Instruments
Analysts maintain an average price target of $309.53 on TXN with a buy rating consensus, implying roughly 16 percent upside from the September 18 close. The stock’s 3.3 percent gain that day tracked a broader semiconductor rally, with the Philadelphia Semiconductor Index up 2.78 percent for its fourth straight advance.
Bottom line
The 7 percent increase keeps TXN’s streak alive and the math clear: $6.08 per share against $4.97 billion in net profit leaves ample coverage. For a 55-plus income investor, the stock offers chip-sector diversification with a payout that has never stalled in 23 years of raises. The October 30 record date is the next date that matters for buyers who want this quarter’s payment.
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