TI to Repurchase Additional $5 Billion in Stock, Increase Dividend 25 Percent

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.

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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

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