Texas Instruments to buy back up to $7.5B in stock, raises dividend 12 percent

Markets Associated Press

Chipmaker Texas Instruments said Thursday it will buy back up to another $7.5 billion in stock and raise its quarterly dividend 12 percent.

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The Dallas-based company also had $1.8 billion remaining on its previous stock buyback authorization at the end of June.

Texas Instruments Inc. is increasing its dividend to 38 cents from 34 cents. It will pay its next dividend on Nov. 16 to shareholders of record on Oct. 30. The company had about 1.03 billion shares on the market in late July. Based on that total Texas Instruments would pay about $390 million in dividends to shareholders every quarter, although the stock buybacks decrease the number of shares and the amount it will pay in dividends.

Shares of Texas Instruments closed at $48.15 on Thursday. The stock has fallen 10 percent in 2015 but in March it peaked at $59.99, its highest price since September 2000.