NEW YORK – On Friday, chip maker Texas Instruments (NASDAQ:TXN) announced on Friday that the company will increase its third-quarter dividend 7 percent over the previous quarter. This announcement is the second dividend increase this year and amounts to a 43 percent dividend increase in 2013.
In many ways, Texas Instruments has been a smart investment as the company has increased the dividend paid to investors in each of the last 10 years. Share repurchases have also reduced the company’s share count by 36 percent and shares have averaged $ 30 in that period. Shares closed on Friday at a 10-year high of $ 40.52. Year-to-date, shares have gained almost 33 percent, outpacing the broader markets.
One of the keys to the company’s recent success has been in providing components to smartphone and tablet manufacturers such as Apple (NASDAQ:AAPL). Earlier this week, Texas Instruments announced an entirely new data converter set specifically designed for sensing applications used in variety controllers from HVAC to speed control for automobiles.
The announcement means that application designers can find new uses for their devices as the data converter provides expanded flexibility. According to one industry analyst, the new data converter delivers attained better performance in accuracy, dynamic range, speed, and other areas.
On Monday, the company released the next generation wireless power transfer circuit to support WirelessPower Consortium (WPC) 1.1 specification. The company claims that the transmitter, which is already available for volume production, requires a third fewer components that competitive solution while ensuring standby power without charging.
According to the Financial Time’s poll of 42 analysts covering the company, most analysts are recommending. While this represents a slight deterioration of company’s outlook from the same time last year, given the new products in the pipeline, and the company’s relationships with leading smartphone designers and manufacturers it might prove to be overly conservative. In fact, if the share price in any indication, it would appear the market likes the results they are seeing from Texas Instruments and will continue push the share price up for the near-term.