TI dividend: payout, cash coverage and yield
TI’s forecast dividend starts at $6.08 per share, after TI raised its quarterly payment to $1.52, and rises to $6.38 and $6.70 in the base case. In 2025, TI paid $4,999 million in dividends against $2,603 million of free cash flow, so cash did not cover the payout.
How much does TI pay per share?
Dividends begin at $6.08 per share because TI raised its quarterly payment to $1.52. The base case grows the payout to $6.38 and then $6.70. The bear case freezes it before cutting to $5.50, while the bull case reaches $7.49. The base is below the recent growth rate because 2025 shareholder payments exceeded ordinary free cash flow.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.45 | 5.20 | 7.07 | 9.41 | 8.26 |
| Free cash flow per share | 2.85 | 1.63 | 1.47 | 6.40 | 6.72 |
| − Dividends paid, per share | 5.48 | 5.22 | 4.97 | 4.64 | 4.15 |
| − Share buybacks, per share | 1.62 | 1.01 | 0.32 | 3.90 | 0.56 |
Does TI’s dividend stay covered by its cash?
Shareholder payments exceeded the remainder. In 2025, dividends of $4,999 million and buybacks of $1,477 million totalled $6,476 million. TI therefore paid out more than its free cash flow, using reserves, investment sales and borrowing to cover the difference.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,603 | 1,498 | 1,349 | 5,923 | 6,294 |
| − Dividends paid | 4,999 | 4,795 | 4,557 | 4,297 | 3,886 |
| − Share buybacks | 1,477 | 929 | 293 | 3,615 | 527 |
| = Free cash flow not paid out | 1,881 | ||||
| = Paid out more than the free cash flow | 3,873 | 4,226 | 3,501 | 1,989 | |
| Paid out, % of free cash flow | 248.8% | 382.1% | 359.5% | 133.6% | 70.1% |
What could change TI’s dividend?
The H1 2027 Silicon Labs closing is another pivot. Delayed savings with higher interest expense would raise net debt through 2029; timely integration would support cash flow, dividends and buybacks.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 13,300 (9,100 / 13,900) | 14,850 (10,200 / 16,400) | 16,275 (11,800 / 19,000) |
| Dividends per share | 6.08 (6.08 / 6.08) | 6.38 (6.08 / 6.75) | 6.70 (5.50 / 7.49) |
| Enterprise value to ebitda | 24.00 (17.00 / 27.00) | 23.00 (15.00 / 29.00) | 22.00 (14.00 / 30.00) |
| Net debt | 13,803 (18,224 / 13,384) | 12,274 (21,462 / 10,968) | 9,962 (22,520 / 7,110) |
What is TI’s dividend yield against its share price?
At $280.565 a share, TI’s market value is $256,225 million. Market value is what investors collectively assign to the shares. When one investor buys a share, the money normally goes to the investor selling it, not to TI.
The 2.0% dividend yield offers cash to shareholders, while the 1.0% free-cash-flow yield measures cash left after capital spending. The dividend can exceed one year’s free cash flow during a factory investment cycle. The planned Silicon Labs acquisition adds another claim on future cash, because TI will fund the approximately $7.5 billion enterprise value with cash and borrowing.