Texas Instruments Stock Capital Return Hits $53 Bil
In the last decade, Texas Instruments (TXN) stock has returned a notable $53 billion back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, TXN stock has returned the 52nd highest amount to shareholders in history.
| TXN | S&P Median | |
|---|---|---|
| Dividends | $30 Bil | $4.5 Bil |
| Share Repurchase | $22 Bil | $5.6 Bil |
| Total Returned | $53 Bil | $9.4 Bil |
| Total Returned as % of Current Market Cap | 25.8% | 24.8% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
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| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $874 Bil | 22.0% | $143 Bil | $731 Bil |
| MSFT | $376 Bil | 12.3% | $172 Bil | $204 Bil |
| GOOGL | $357 Bil | 8.7% | $15 Bil | $342 Bil |
| XOM | $218 Bil | 35.4% | $146 Bil | $72 Bil |
| WFC | $212 Bil | 72.0% | $58 Bil | $153 Bil |
| META | $184 Bil | 10.6% | $10 Bil | $174 Bil |
| JPM | $181 Bil | 20.8% | $0.0 | $181 Bil |
| JNJ | $159 Bil | 28.4% | $105 Bil | $54 Bil |
| ORCL | $158 Bil | 35.7% | $35 Bil | $123 Bil |
| CVX | $157 Bil | 45.4% | $99 Bil | $58 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a percentage of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for TXN. (see Buy or Sell Texas Instruments Stock for more details.)
Texas Instruments Fundamentals
- Revenue Growth: 9.9% LTM and -4.6% last 3-year average.
- Cash Generation: Nearly 12.0% free cash flow margin and 34.8% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for TXN was -13.3%.
- Valuation: Texas Instruments stock trades at a P/E multiple of 40.6
| TXN | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Semiconductors | – |
| PE Ratio | 40.6 | 24.6 |
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| LTM* Revenue Growth | 9.9% | 6.4% |
| 3Y Average Annual Revenue Growth | -4.6% | 5.6% |
| Min Annual Revenue Growth Last 3Y | -13.3% | 0.3% |
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| LTM* Operating Margin | 34.8% | 18.8% |
| 3Y Average Operating Margin | 38.0% | 18.3% |
| LTM* Free Cash Flow Margin | 12.0% | 14.0% |
*LTM: Last Twelve Months
The table gives good overview of what you get from TXN stock, but what about the risk?
TXN Historical Risk
Texas Instruments isn’t immune to big drops. It fell 77% during the Dot-Com crash and 64% in the Global Financial Crisis. The smaller hits weren’t trivial either — 25% in the 2018 correction, nearly 30% during the Covid sell-off, and 25% again in the recent inflation shock. Solid fundamentals matter, but when the market turns sour, even strong stocks like TXN can take a serious hit.
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