Texas Instruments (NYSE: TXN) announced the repurchase of an additional $5 billion of its common stock. Additionally, the company plans to raise its quarterly cash dividend 25 percent to $0.10 per share.
This most recent action brings the Board’s total stock repurchase authorization since September 2004 to $20 billion. Today’s announced authorization is in addition to any outstanding authorizations, which totaled approximately $3.8 billion at the end of the second quarter.
Texas Instruments Incorporated provides innovative DSP and analog technologies to meet customers’ real world signal processing requirements.
Payout Yield Analysis
With 1.43 billion shares outstanding, the $8.8 billion of outstanding authorization will return $6.15 per share. However, the company’s track record of executing share repurchases is uneven, ranging from $2 to $4 billion per year. Combined with the new annualized dividend of $.40, we project the Total Payout will be $1.80 – $3.20 per share. At a share price of $37 per share, the Total Payout Yield will be 4.8% to 8.6%.
- Payout Yield Staff