TXN dividend yield: 2.82%. MSFT dividend yield: 0.72%. Texas Instruments is a semiconductor company with 21+ consecutive years of dividend increases. Its analog and embedded processing chips are used across industrial, automotive, and consumer electronics. TXN's capital management philosophy prioritizes returning all free cash flow to shareholders via dividends and buybacks. Microsoft has grown its dividend 10%+ annually for a decade, making it one of the best dividend growth stories in tech. Azure cloud dominance and AI integration (Copilot) drive strong cash generation. Low payout ratio of ~24% means dividends are extremely safe with significant room to grow.
Texas Instruments is a semiconductor company with 21+ consecutive years of dividend increases. Its analog and embedded processing chips are used across industrial, automotive, and consumer electronics. TXN's capital management philosophy prioritizes returning all free cash flow to shareholders via dividends and buybacks.
Microsoft has grown its dividend 10%+ annually for a decade, making it one of the best dividend growth stories in tech. Azure cloud dominance and AI integration (Copilot) drive strong cash generation. Low payout ratio of ~24% means dividends are extremely safe with significant room to grow.
Is TXN or MSFT better for dividend income in 2026?
TXN currently offers a 2.82% yield (5.20/share/year) while MSFT offers 0.72% (3.00/share/year). TXN provides higher current income. However, TXN has grown its dividend faster (13.1% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in TXN vs MSFT earn per year?
With $10,000 invested today: TXN pays approximately $282/year. MSFT pays approximately $72/year. With DRIP reinvestment over 10 years, these grow to $1,483/year (TXN) and $199/year (MSFT).
Does TXN or MSFT pay monthly dividends?
TXN pays quarterly dividends. MSFT pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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