TXN (Texas Instruments) Dividend Payout Ratio: 0.84 (As of Mar. 2026) — 47% Above Median


TXN Texas Instruments Inc TXN
84 GF Score
Price $285.43
GF Value $212.59
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Texas Instruments Dividend Payout Ratio?

Texas Instruments TXN -8.46% 84 Dividend Payout Ratio is 0.84 as of Mar. 2026, which is 47% above its 10-year median of 0.57. GuruFocus rates TXN with a GF Score™ of 84/100 and a GF Value™ of $212.59 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 453 Semiconductors companies, Texas Instruments ranks worse than 80.13% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Texas Instruments's Dividend Payout Ratio for the months ended in Mar. 2026 was 0.84.

Warning Sign:

If a company's dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of Texas Instruments Inc is 0.93, which seems too high.

The historical rank and industry rank for Texas Instruments's Dividend Payout Ratio or its related term are showing as below:

TXN' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.44   Med: 0.57   Max: 1.04
Current: 0.93

During the past 13 years, the highest Dividend Payout Ratio of Texas Instruments was 1.04. The lowest was 0.44. And the median was 0.57.

TXN's Dividend Payout Ratio is ranked worse than
80.13% of 453 companies
in the Semiconductors industry
Industry Median: 0.39 vs TXN: 0.93

As of today (2026-06-27), the Dividend Yield % of Texas Instruments is 1.97%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Texas Instruments was 3.60%. The lowest was 1.72%. And the median was 2.50%.

Texas Instruments's Dividends per Share for the months ended in Mar. 2026 was $1.42.

During the past 12 months, Texas Instruments's average Dividends Per Share Growth Rate was 4.50% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 5.50% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 8.00% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 15.20% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Texas Instruments was 57.50% per year. The lowest was -7.20% per year. And the median was 13.50% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Texas Instruments (NAS:TXN) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Texas Instruments Dividend Payout Ratio Related Terms

Texas Instruments Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Texas Instruments's Dividend Payout Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Texas Instruments Dividend Payout Ratio Chart

Texas Instruments Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.50 0.49 0.71 1.04 0.99

Texas Instruments Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.06 0.97 0.87 1.09 0.84

TXN vs QCOM, ADI, MRVL: Dividend Payout Ratio Comparison

For the Semiconductors subindustry, Texas Instruments's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Texas Instruments Dividend Payout Ratio vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Texas Instruments's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Texas Instruments's Dividend Payout Ratio falls into.


TXN
84GF Score
Texas Instruments Inc TXN
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Texas Instruments Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Texas Instruments's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Dec. 2025 )/ EPS without NRI (A: Dec. 2025 )
=5.5/ 5.562
=0.99

Texas Instruments's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=1.42/ 1.697
=0.84

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 0.84 mean?
Texas Instruments (TXN) has a Dividend Payout Ratio of 0.84 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Texas Instruments and its competitors. This is 47% above median its historical median of 0.57. Over the past decade, Texas Instruments' Dividend Payout Ratio has ranged from 0.44 to 1.04. According to the industry distribution chart, Texas Instruments ranks #363 out of 453 companies in the Semiconductors industry, placing it in the top 80.1%.
Is Texas Instruments' Dividend Payout Ratio too high?
Texas Instruments' current Dividend Payout Ratio of 0.84 is 47% above median its 10-year median of 0.57. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 1.04. The Semiconductors industry median Dividend Payout Ratio is 0.39. Texas Instruments' value of 0.84 is 115.4% above this industry median. Based on the distribution chart, Texas Instruments ranks #363 out of 453 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Texas Instruments has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' Dividend Payout Ratio compare to QCOM and ADI?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #363 out of 453 companies for Dividend Payout Ratio. This places Texas Instruments in the lower half of its industry. The industry median Dividend Payout Ratio is 0.39. Texas Instruments' value of 0.84 is 115.4% above this benchmark. Historically, Texas Instruments' own Dividend Payout Ratio has ranged from 0.44 to 1.04 over the past decade. While the company's 10-year median is 0.57 vs. the industry median of 0.39, Texas Instruments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Semiconductors company?
The median Dividend Payout Ratio among Semiconductors companies is 0.39, based on 453 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current Dividend Payout Ratio of 0.84 is 115.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median Dividend Payout Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current Dividend Payout Ratio is 0.84, which is 47% above median its own 10-year median of 0.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Based on GuruFocus' analysis, Texas Instruments (TXN) is currently considered Significantly Overvalued. The stock's GF Value™ is $212.59, compared to a current price of $285.43 — trading 34.3% above its estimated fair value. The current Dividend Payout Ratio is 0.84, which is 47% above median its 10-year median of 0.57 and 115.4% above the Semiconductors industry median of 0.39. Texas Instruments' overall GF Score™ is 84/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Texas Instruments (TXN), the current Dividend Payout Ratio is 0.84 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Texas Instruments (TXN) Overvalued in 2026?

Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued. The current stock price of $285.43 is trading 34.3% above its estimated GF Value™ of $212.59. GuruFocus considers Texas Instruments to be Significantly Overvalued.

Key valuation signals for TXN:

  • Dividend Payout Ratio: 0.84 (47% above median its 10-year median of 0.57)
  • GF Value™: $212.59 vs. price of $285.43 (34.3% above fair value)
  • GF Score™: 84/100 with 5 warning signs
  • Industry Position: 115.4% above the Semiconductors median (#363 of 453)

No single metric tells the full story. See the TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Texas Instruments Business Description

Address 12500 TI Boulevard, Dallas, TX, USA, 75243
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
84GF Score

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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$285.43
Price
$212.59
GF Value