Texas Instruments Rallies Off Increased Dividend, Share Buyback

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Texas Instruments Incorporated TXN shares were trading higher by $0.30 at $48.45 in Friday's session. The catalyst for the rise in a red tape is the announcement that the company has raised its quarterly dividend from $0.34 to $0.38/share. Also, it will implement at $7.5B share buyback.

After a lower open, it continued in that direction and found support just ahead of the pair of lows from September 10 ($46.90) and September 11 ($46.82) only reaching $47.10.

The ensuing rally has taken the issue beyond Thursday's close ($48.15), but well shy of Thursday's high ($49.03), only reaching $48.61.

Today's price action is taking place on higher than average volume. With over four hours remaining, 6.67 million have traded compared to its 20-day average of 9.3 million.