- Chipmaker increases dividend by 4 cents to 38 cents a share
- Company's payout is rising for 12th consecutive year
Texas Instruments Inc., the largest maker of analog chips, said it added $7.5 billion to its stock-repurchase plan and increased its dividend, part of a plan to return more cash to shareholders.
The chipmaker’s new buyback authorization adds to $1.8 billion already available for purchasing its stock, the company said in a statement Thursday. It didn’t specify a time limit on the new plan. The Dallas-based company has reduced its outstanding share count by 40 percent since the beginning of 2005.
Texas Instruments has turned away from faster-growing, volatile markets such as mobile-phone processors in favor of the broader market for simpler analog chips that go into everything from space hardware to consumer electronics. That shift has lowered the company’s requirement for spending and made its earnings more predictable.
The company raised its quarterly dividend by 12 percent to 38 cents a share, from 34 cents, marking its 12th consecutive annual increase. Holders of record on Oct. 30 will receive their higher payout Nov. 16, subject to approval by directors in October.
Texas Instruments shares fell 1.1 percent to $48.15 at the close in New York. That leaves them down 9.9 percent this year, in line with the decline by the benchmark Philadelphia Stock Exchange Semiconductor Index.