On Thursday, September 17, 2026, the Board of Directors of Texas Instruments Incorporated (TXN) announced a quarterly dividend increase from $1.42 to $1.52 per share. The dividend will be payable on November 10, 2026, to shareholders of record as of October 30, 2026. This represents a 7.04% increase over the previous quarterly dividend and marks the 23rd consecutive year of dividend increases.
Current Dividend Yield and Income Impact
At yesterday's closing price of $270.87, this increase brings TXN's forward dividend yield to approximately 2.24%.
As an owner of 20 shares of Texas Instruments Incorporated, this dividend increase adds $5.96 to my projected annual net dividend income.
Long-Term Dividend Growth Track Record
Texas Instruments is a Dividend Contenders with a 23-year streak of consecutive dividend increases. According to Dividend Champions data, its dividend growth rates are:
- 1-year: 4.6%
- 3-year: 5.5%
- 5-year: 8.1%
- 10-year: 14.7%
This recent dividend increase marks the fifth consecutive raise I’ve received from TXN since initiating my position in January 2022. Over this period, the quarterly dividend has grown from $1.15 to $1.52 per share, representing a 32.2% increase.
Commentary
I was expecting an increase of around 3%, so this announcement came in well above my expectations, and I’m very happy to accept it.
After several years of more moderate dividend growth, this increase represents a meaningful acceleration and is a welcome development for long-term shareholders.
At the time of writing, TXN represents approximately 0.51% of my portfolio and contributes about 0.31% of my projected annual dividend income. Following this increase, my yield on cost stands at 3.77%.
Quick Valuation Take
At the current share price, Texas Instruments is trading at a relatively demanding valuation compared with many mature industrial and semiconductor companies. The 2.28% forward dividend yield is not particularly high, so a significant part of the investment case depends on future earnings and dividend growth.
The recent dividend increase is encouraging, but the valuation leaves less room for disappointment if earnings growth remains subdued.
Dividend Safety and Outlook
TXN's dividend remains supported by its strong market position, cash generation, and long history of returning capital to shareholders. The company has now increased its dividend for 23 consecutive years, demonstrating a long-term commitment to growing shareholder income.
The latest 7.04% increase is particularly encouraging after the lower growth rates of recent years. If earnings and free cash flow growth improve, TXN has the potential to return to a stronger dividend growth trajectory.
Final Thoughts
This was a very pleasant dividend increase. I was expecting only about 3%, so the 7.04% raise was significantly above my expectations.
With a 23-year dividend growth streak and a clear commitment to increasing the dividend, Texas Instruments continues to be an interesting long-term dividend growth holding. The current valuation is something I will keep an eye on, but the acceleration in dividend growth is certainly welcome.
For my portfolio, TXN continues to provide growing income, and this latest increase gives another boost to my projected annual dividend income.
Summary of 2026 Dividend Increases / Cuts
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You can follow the development of my dividends here.
Full Disclosure: Long TXN
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