logo
Share SHARE
FONT-SIZE Plus   Neg

Texas Instruments Hikes Dividend, Expands Share Buyback By $5 Bln

Chipmaker Texas Instruments Inc. (TXN) said Thursday that its board of directors has authorized the purchase of an additional $5 billion of the company's common stock. In addition, the company hiked its quarterly dividend b 33 percent. The company noted that these increases reflect its ability to generate cash and its commitment to return the cash to shareholders.

Accordingly, Texas Instruments will increase its quarterly dividend to $0.28 per share from $0.21 per share. The new dividend is payable May 20 to shareholders of record on April 30. Annualized, the new dividend will be $1.12.

The company authorized the repurchase of an additional $5 billion of its common stock, bringing the total outstanding authorization to $8.4 billion. The company noted that common stock repurchases have reduced its outstanding shares by 36 percent since the end of 2004.

Texas Instruments makes chips used in phones, telecommunications equipments and calculators, making the company's earnings an indicator of demand across the economy.

According to the company, over the past few years, it has built a business model for growth and high margins with its focus on analog and embedded processing semiconductors. As a result, the company believes it can consistently convert 20-25 percent of its revenue into free cash flow and return 100 percent of that free cash flow, less debt repayment, to shareholders.

In late January, Texas Instruments said its fourth quarter profit declined 11 percent from last year, hurt by lower revenue and higher restructuring charges. At thsat time, the company also gave a downbeat outlook for the first quarter.

TXN closed Thursday's regular trading at $32.48, down $0.58 or 1.75 percent on a volume of 11.44 million shares. However, in after-hours, the stock gained $0.60 or 1.85 percent to $33.08.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Shares of social network company Twitter Inc. (TWTR), jumped over 5 percent on Wednesday, after one of its cofounders Ev Williams dropped a hint during a television interview about the company's sale. Ev Williams, a Twitter cofounder and board member, was asked by Bloomberg TV about the company's... Mazda Motor Corp. (MZDAF.PK) is recalling over 190,000 CX-7 sport utility vehicles to fix a issue that could lead to loss of steering control. The recall involves CX-7 models from 2007 through 2012 manufactured between February 14, 2006 to May 9, 2012. The company said there have been no reports of... Over 68 million email address and passwords of Dropbox users were stolen by hackers, according to a report from Motherboard. Although, the account details were stolen during a previously disclosed breach that took place in 2012, the magnitude of the attack has come to light only now. Following...
comments powered by Disqus
Follow RTT