TI to Repurchase Additional $5 Billion in Stock, Increase Dividend by 33%
Texas Instruments Inc. (TI) announced that its Board of Directors has authorized the company to repurchase an additional $5 billion of its common stock. TI plans to repurchase shares at times and prices considered appropriate by the company. When combined with other previously announced buyback plans, the total outstanding share repurchase authorization is now $6.8 billion. Including today's announcement, the Board has authorized the repurchase of $15 billion of stock since September 2004. Over this period, the company has reduced the number of its shares outstanding by over 200 million shares, or more than 10%.
The company also plans to raise its quarterly cash dividend 33%. TI's new quarterly dividend rate will be $0.04 per quarter, resulting in annual dividend payments of $0.16 per share. The company's previous dividend increase was announced in July 2005, when the dividend was raised 20%. TI has paid dividends to its shareholders on an uninterrupted basis since June 1, 1962.
TI expects the first quarterly distribution of the new dividend will be payable November 20, 2006, to stockholders of record on October 31, 2006, contingent upon formal declaration by the Board of Directors at its regular meeting in October.