Market Overview

Texas Instruments Raises Dividend By 24%, And It'll Likely Raise Again

Share:
Texas Instruments Raises Dividend By 24%, And It'll Likely Raise Again
Related TXN
KeyBanc Previews Q3 Semi Earnings, Downgrades Integrated Device Technology On Renesas Deal
Goldman Selective On Semis: Bullish On Nvidia, Xilinx, Bearish On Intel, Texas Instruments
2018 Third Quarter Review - Buying Dividend Growth Stocks Without Looking (Seeking Alpha)

Close on the heels of Texas Instruments Incorporated (NASDAQ: TXN) bumping up its quarterly dividend by 24 percent, Jefferies said in a note it expects the company to raise its dividend yet again.

As such, the firm reiterated its Buy rating on the shares of Texas Instruments and its $96 price target.

At time of publication, Mark Lipacis noted that the company announced a quarterly dividend of 62 cents per share, up 12 cents and translating to a dividend yield of 2.9 percent. The first dividend payment is scheduled for Nov. 13, 2017.

The analyst noted the dividend yield of 2.9 percent for Texas Instruments compared to the 2 percent for the S&P 500 and marked the second highest in its coverage universe.

See also: Why It's Too Soon To Judge Apple's Next Product Cycle

Jefferies also noted that the company's board has authorized a $6 billion buyback program. This is in addition to the $4.6 billion pending from its previously authorized repurchases.

Thus, the firm said Texas Instruments' policy to return 100 percent of its free cash flow to shareholders is the benchmark in the semiconductor sector. This, according to the firm, has translated to a premium valuation multiple, which it said the company can sustain.

tipranks_360.png

Jefferies expects the dividend to grow, as revenues and gross margins expand. The firm said it favors Texas Instrument as a Tectonic Shift play on IoT, and as a beneficiary of a budding U.S. CapEx cycle.

Additionally, the firm sees gross margin tailwinds from increased 300 million capacity utilization. The firm also noted that the company is a market share leader capturing outsized profits in the consolidating analog semiconductor industry.

Related Link: Barron's Picks And Pans: Nike, Altaba, Viacom And More
______
Image Credit: By Mang9 - Own work, CC BY-SA 3.0, via Wikimedia Commons

Latest Ratings for TXN

DateFirmActionFromTo
Oct 2018Goldman SachsUpgradesSellNeutral
Sep 2018KeyBancInitiates Coverage OnSector Weight
Jul 2018Bank of AmericaMaintainsBuyBuy

View More Analyst Ratings for TXN
View the Latest Analyst Ratings

Posted-In: Analyst Color News Dividends Dividends Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (TXN)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DISBarclaysUpgrades130.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Morning Market Update: Markets Edge Lower; CarMax Tops Q2 Expectations

Will Intercept Stock Potential Be Blindsided By FDA Letter?