Texas Instruments (NASDAQ: TXN) has raised its quarterly dividend 7 percent to 1.52 dollars per share, the 23rd consecutive annual increase in the chipmaker’s payout. The first payment at the new rate goes out November 10 to shareholders of record on October 30. Income investors have a short window left to buy shares and qualify for the payment.
What happened
The board approved the increase in September, lifting the quarterly payout from 1.42 dollars to 1.52 dollars per share. That brings the annualized dividend to 6.08 dollars, up from 5.68 dollars. Texas Instruments has now raised its dividend every year for 23 straight years, one of the longest streaks in the semiconductor industry.
Key numbers for TXN income investors
The table below shows the new payout alongside the dates that matter for the next payment.
| Metric | Value |
|---|---|
| New quarterly dividend | 1.52 dollars per share |
| Prior quarterly dividend | 1.42 dollars per share |
| Annualized dividend | 6.08 dollars per share |
| Next payment date | November 10, 2026 |
| Record date | October 30, 2026 |
| Recent share price | About 290 dollars |
| Indicated yield | About 2.1 percent |
| 52-week range | 152.76 to 334.03 dollars |
What the payout means for income investors
At recent prices near 290 dollars, TXN yields roughly 2.1 percent, modest on its own but backed by more than two decades of uninterrupted growth. The stock has returned about 56 percent year to date, and the average analyst price target sits near 325 dollars, according to market data tracked by Yahoo Finance. Data compiled by MarketBeat shows analysts expecting about 9.87 dollars per share in earnings next year, which would put the dividend near 62 percent of forward earnings.
For comparison, here is the annual income a 100,000 dollar allocation would generate at recent prices.
| Stock | Annual dividend | Shares per 100,000 dollars | Approximate annual income |
|---|---|---|---|
| Texas Instruments (TXN) | 6.08 dollars | 344 | 2,090 dollars |
| Pfizer (PFE) | 1.72 dollars | 3,387 | 5,827 dollars |
| Starbucks (SBUX) | 2.52 dollars | 1,223 | 3,083 dollars |
| Phillips 66 (PSX) | 5.32 dollars | 342 | 1,821 dollars |
The trade-off is clear. TXN delivers less current income than high-yield names, but the payout has grown every year and sits below the company’s projected earnings power.
A retiree with a 500,000 dollar portfolio who allocates 5 percent to TXN would hold about 25,000 dollars of stock and collect just over 520 dollars a year at the new rate.
Two risks deserve attention. The stock trades about 13 percent below its 52-week high of 334.03 dollars, so price gains may be harder to repeat. A 2.1 percent yield also loses appeal if interest rates stay elevated, which makes continued dividend growth the key variable.
What to watch for Texas Instruments
- Third-quarter results and the company conference call scheduled for October 21
- Demand signals from the analog and embedded processing markets that drive TXN revenue
- The October 30 record date, the last chance to own shares before the new payment
Bottom line
TXN fits the growth side of a dividend portfolio rather than the income side. A 2.1 percent yield will not carry a retirement plan alone, but 23 years of increases and a payout covered by projected earnings make it a dependable compounder for patient investors.
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