(Updates with CEO comment in fourth paragraph.)
Sept. 15 (Bloomberg) -- Texas Instruments Inc., the largest maker of analog chips, boosted its quarterly dividend 31 percent as it sells technologies that generate more cash.
The dividend rises to 17 cents a share from 13 cents and will be payable Nov. 21 to stockholders of record as of Oct. 31, the Dallas-based company said today in a statement.
Texas Instruments is moving to a greater percentage of analog and embedded processing technologies, which generate higher returns and cash flow, after saying earlier this month that a weakening economy is weighing on demand for its current products. The company gets most of its revenue from analog chips, semiconductors that are key components in everything from medical devices to e-book readers.
“This dividend increase reflects the strength of our strategy, our confidence in our future and our commitment to shareholders,” Chief Executive Officer Rich Templeton said in the statement. The company said it has boosted the payout for eight consecutive years.
The company said this month that third-quarter sales may fall short of earlier forecasts. Profit in the quarter will be 56 cents to 60 cents a share on revenue of $3.23 billion to $3.37 billion, according to its Sept. 8 outlook. Analysts on average had estimated profit of 60 cents and sales of $3.5 billion, according to data compiled by Bloomberg.
Texas Instruments rose 44 cents, or 1.6 percent, to $27.71 at 4:15 p.m. on the New York Stock Exchange. The shares have declined 15 percent this year.
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