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Texas Instruments Incorporated Dividends

TXN Stock Analysis

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Section title

Dividend Yield
2.74%
Payout Ratio
96.83%
Dividend Amount Per Share
$5.20
Last Ex-Dividend Date
Oct 31, 2024

TXN Dividend Safety

TXN paid out 96.83% of its $7B earnings as dividends over the last 12 months.

Unsafe

  1. Very Unsafe

  2. Unsafe

  3. Somewhat Safe

  4. Safe

  5. Very Safe

Dividend Payout Ratio

TXN's Dividend Payout Ratio of 96.834% is considered high for the Technology sector, potentially restricting the funds available for reinvestment and threatening future growth.

Interest Rate Coverage

TXN's Interest Coverage Ratio of 11.548 indicates strong financial health with easy coverage of interest expenses.

Income Quality

TXN has moderate income quality with a ratio of 0.986. This suggests reasonable stability but some risk of dividend cuts.

TXN Dividend Growth

Texas Instruments Incorporated(TXN) offers a dividend yield of 2.74% and pays $5.20 in dividends per share. Explore the historical dividend growth of TXN.

Dividend Stability

TXN has maintained stable dividend payments over the past 10 years with no cuts over 5%.

Dividend Growth

TXN's dividend payments have increased by 8.607% annually over the last 5 years.

Earnings Growth

TXN's earnings have grown by 5.348% annually over the last 5 years. This strong earnings growth suggests a stable and increasing income stream, supporting the sustainability and potential growth of dividend payouts.

TXN Dividend Yield Attractiveness

Texas Instruments Incorporated(TXN) provides a dividend yield of 2.74%. Compare this with the averages of its peers, industry, and sector to see how it stacks up.

Yield %

Peers

Sector

Industry

TXN

1.52%

2.05%

2.11%

2.74%

Dividend Yield

TXN's dividend yield of 2.74% is considered good compared to the sector average of 2.05%, providing a strong safety margin for investors.

TXN Cash Flow

Over the past 12 months, TXN generated $16B in revenue, produced $1B in free cash flow, and distributed $5B in dividends.

100%75%50%25%0%

Free Cash Flow Growth

TXN's free cash flow has decreased by -25.306% annually over the last 5 years, indicating a weak ability to generate cash and support dividend payments.

TXN Free Cash Flow and Dividends Paid

This chart shows the Free Cash Flow (FCF) and the portion of FCF used to pay dividends each year by Texas Instruments Incorporated. The filled portion of the bar represents the dividends paid, while the remaining portion represents the remaining FCF.