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Texas Instruments Inc (TXN) logo

Texas Instruments Inc

S&P 500
TXN|Technology|Semiconductors|$287.80|P/E 49.6|MCap 261.9B|NASDAQ

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

66/ 100Safe

TXN's dividend appears safe and well-supported. Strengths include a 11.5x interest coverage & 4.5x current ratio. Areas of concern: 95.0% earnings payout ratio & 135.8% fcf payout ratio.

Based on 15 of 15 metrics

Strengths

  • Interest Coverage: 11.5xEarnings cover interest payments many times over.
  • Current Ratio: 4.5xStrong short-term liquidity to meet obligations.
  • Return on Equity: 32.4%Strong return on equity reflects efficient profit generation.

Risks

  • FCF Payout Ratio: 135.8%Free cash flow is tight relative to the dividend.
  • 5-Year Dividend CAGR: -3.0%Dividend growth has been weak or negative.
  • Earnings Payout Ratio: 95.0%High earnings payout ratio leaves little safety margin.

Payout & Coverage

Caution
Earnings Payout Ratio
95.0%Warning
FCF Payout Ratio
135.8%Danger
CFO Payout Ratio
71.6%Warning
Interest Coverage
11.5xVery Safe

Balance Sheet

Safe
Net Debt / Total Assets
31.3%Caution
Current Ratio
4.5xVery Safe
Debt-to-Equity
83.7Safe

Profitability

Very Safe
Return on Equity
32.4%Very Safe
Operating Margin
37.8%Very Safe
Gross Margin
58.0%Very Safe
Profit Margin Stability
StableSafe

Dividend Track Record

Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
-3.0%Danger
Earnings Stability
StableSafe

About Texas Instruments Inc

Texas Instruments Inc. is a global semiconductor design and manufacturing company headquartered in Dallas, Texas. It specializes in analog and embedded processing chips that power diverse electronic systems, including industrial equipment, automotive electronics, personal devices, and communications infrastructure. The company also offers digital light processing technology for projection and display applications, alongside a renowned line of graphing calculators serving educational markets worldwide. Organized into analog and embedded processing segments, Texas Instruments provides power management, signal chain, data converters, microcontrollers, and processors for motor control, wireless connectivity, and real-time applications. With design, research, development, and manufacturing facilities across North America, Europe, and Asia, it serves original equipment manufacturers and industrial customers in over 100 countries. End markets encompass automotive, industrial automation, personal electronics, communications equipment, and enterprise systems. Led by President and Chief Executive Officer Richard K. Templeton, Texas Instruments emphasizes operational efficiency, customer-focused innovation, and strategic manufacturing investments, maintaining a leading position as the world's largest maker of analog chips.

Dividend Overview

Dividend Yield

1.95%

Annual Dividend

$5.62

Frequency

Quarterly

Payout Ratio

95.04%

FCF Payout Ratio

135.77%

Stock Price

$287.80

52-Week Range

$152.73 $292.64

Dividend History (2016–2025)

TXN annual dividend per share and yield history

Earnings & Profitability

TXN earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

May 5, 2026

Next Payment Date

May 19, 2026

Dividend Growth

3-Year Dividend CAGR

5.45%

5-Year Dividend CAGR

-3.05%

10-Year Dividend CAGR

6.98%

3-Year Total Growth

17.27%

5-Year Total Growth

-14.33%

10-Year Total Growth

96.43%

Income Calculator

TXN Dividend Calculator

Total Investment

$28,780.00

Annual Income

$562.00

Quarterly Income

$140.50

Monthly Income

$46.83

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Frequently Asked Questions

What is TXN's current dividend yield?
Texas Instruments Inc (TXN) currently has a dividend yield of 1.95%, based on a stock price of $287.80 and an annual dividend of $5.62.
When is TXN's next dividend payment date?
TXN's next ex-dividend date is 2026-05-05 and the next payment date is 2026-05-19. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does TXN pay in dividends per year?
Texas Instruments Inc paid $5.50 per share in annual dividends in 2025. The dividends are paid quarterly.
Has TXN been increasing its dividend?
Texas Instruments Inc has grown its dividend at a 5-year CAGR of -3.05% and a 10-year CAGR of 6.98%.
Is TXN's dividend safe?
Texas Instruments Inc has a payout ratio of 95.04%. Its free cash flow payout ratio is 135.77%. The payout ratio is moderate. Monitor earnings to ensure sustainability.
How is TXN's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Texas Instruments Inc's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for technology companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.