Texas Instruments (TXN), which makes analog chips,will raise its dividend by 24%, the company said Thursday.
Texas Instruments has made returning capital to shareholders an important priority. Along with a dividend hike, the company disclosed that its board of directors had authorized Texas Instruments to buy back $12 billion of its common stock - or roughly 11% of its current market capitalization.
That authorization is on top of about $7.4 billion of what remained from previously authorized buybacks.
Thanks to strong earnings and free cash flow growth, the company has put through big dividend increases in recent years. Last September, it also hiked its common dividend by 24%, in that case to 62 cents from 50 cents.
Analysts expect the company to earn $5.66 per share this year, up from $4.36 in 2017. And free cash flow - essentially operating cash minus capital expenditures - is expected to rise as well.
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Texas Instruments stock, which has returned 29% in the past year, yields 2.3%. The stock closed at $108.49 a share on Thursday.