Texas Instruments Incorporated (TXN) is set to report its first-quarter earnings results after the closing bell on Tuesday. Analysts anticipate the Dallas-based company to post quarterly earnings of $1.07 per share, representing a decline from the $1.85 per share recorded in the corresponding period a year ago. Revenue for the quarter is projected at $3.61 billion, compared to the $4 billion reported in the previous year’s quarter, according to data from Benzinga Pro.
Evercore ISI Group analyst Mark Lipacis has initiated coverage on Texas Instruments, assigning an Outperform rating and setting a price target of $213. This development has sparked interest among investors, some of whom are considering the potential gains from the company’s dividends. Currently, Texas Instruments offers an annual dividend yield of 3.18%, translating to a quarterly dividend of $1.30 per share or $5.20 per year.
To earn $500 per month or $6,000 annually solely from dividends, an investment of $188,598 or approximately 1,154 shares would be required. For a more manageable monthly income of $100 or $1,200 per year, an investment of $37,752 or about 231 shares would be necessary. The calculation involves dividing the desired annual income by the dividend amount. For example, to earn $500 per month ($6,000 per year), divide $6,000 by $5.20, resulting in 1,154 shares.
It is important to note that dividend yield can fluctuate as both the dividend payment and the stock price are subject to change over time. The dividend yield is determined by dividing the annual dividend payment by the stock’s current price. For instance, if a stock pays an annual dividend of $2 and is priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield falls to 3.33% ($2/$60). Conversely, if the stock price decreases to $40, the dividend yield rises to 5% ($2/$40). Changes in dividend payments can also impact the yield. An increase in dividends will lead to a higher yield, assuming the stock price remains unchanged. Conversely, a decrease in dividends will result in a lower yield.
On Monday, shares of Texas Instruments experienced a 2.4% gain, closing at $163.43. This update is of interest to investors who are contemplating the potential returns from investing in Texas Instruments, considering factors such as its earnings performance, dividend yield, and analyst sentiment.
