Not really a surprise that TXN was not a double digit dividend increase
TXN $Texas Instruments(TXN)$ with a 5% dividend increase from $1.24 per share to $1.30 /share/quarterTXN Cash flow Not really a surprise that it was not a double digit dividend increaseImageTXN Capex will be a burden on FCF and the ability to keep delivering double digit dividend growth Capex: 1Q run rate ~$4 B TTM $3.3 BTXN Capex and the previously announced target of 90% internal assembly by 2030 2023-2026 Capex run rate expected at $5 BImageInvestment into the future may be, It’s typically cyclical But it’s clear there is demand and continues to rise. (automotive as example putting a lot more chips than just a few years ago) The other part of Capex is the conversion to 300 mm wafers in the Frontend to improve margin/cost.Image
$Starbucks(SBUX)$ just announced a dividend increase of 7.5%ImageIt increased in the company’s quarterly cash dividend from $0.53 to $0.57 per share of outstanding Common Stock. This increase will be effective with the dividend payable on November 24, 2023, to shareholders of record on November 10, 2023, and raises the company’s annual dividend rate to $2.28 per share.Starbucks initiated its dividend in 2010 at $0.05 per share of outstanding Common Stock, and increased its dividend consecutively each year over the past 13 years at a CAGR of approximately 20%.Cheers shareholders!
$Texas Instruments(TXN)$ TXN with a 5% dividend increase it will raise its quarterly cash dividend 5%, from $1.24 per share to $1.30, or $5.20 annualized. The higher dividend will be payable November 14, 2023, to stockholders of record on October 31, 2023. Today's announcement marks 20 consecutive years of dividend increases.TXN Cash flow Not really a surprise that it was not a double digit dividend increaseImageTXN Capex will be a burden on FCF and the ability to keep delivering double digit dividend growth Capex: 1Q run rate ~$4 B TTM $3.3 B
MSFT $Microsoft(MSFT)$ announces a 10% dividend increasequarterly dividend of $0.75 per share, reflecting a 7 cent or 10% increase over the previous quarter’s dividendThe dividend is payable Dec. 14, 2023, to shareholders of record on Nov. 16, 2023. First dividend at new level, with ex-dividend date Nov. 15, 2023In addition, the company announced the date for the 2023 Annual Shareholders Meeting, to be held on Dec. 7, 2023.
AVGO $Broadcom(AVGO)$ goes ex-dividend tomorrow 20SEP • Should be the last dividend at $4.60/share• Dividend hike announcement expected beg Dec• Last year's dividend increase +12% • 2.2% dividend yield• Dividend payout TTM (% FCF): 43%ImageAVGO segment revenueSemiconductor solutions has been the growth engine for the past 3 years (double digits until 1QFY23)Infrastucture software as total % of revenue has dropped from 28% in FY20 to 21 % for the first 3 quarters of FY23 ImageAVGO proposed acquisition of VMW $VMware(VMW)$ would rebalance thisIt would mean a near 50-50 weight of revenue between semicondutctors and softwareImage
MSFT $Microsoft(MSFT)$ should announce a dividend hike this weekdividend increase:4-year CAGR 10.3%last year 9.7%FY23 dividend (FCF) payout 32%Current quarterly dividend $0.68if new:$0.74 (+$0.06) +8.9%$0.75 (+$0.07) +10.3%$0.76 (+$0.08) +11.8%Any guess on next dividend hike?<9%35.7%>=9% and <11%49.3%>=11%13.1%I´ll tweet a specific %1.9%MSFT previous 4 dividend hikesImageMSFT FCF/share growth since FY18 FY23 marked the first decline since FY15 FY18 to FY23 FCF/share growth 14% CAGR Imagefor your particular case, you´d rather see MSFT going for lower dividend increase and higher buybacks, or even sit on more cash for a share price drop/M&A?I doubt we´re getting a special dividend any time soon Current dividend bill is up to $20 B an
MO $Altria(MO)$ goes ex-div tomorrow 14SEP First dividend at new level of $0.98 /share • Dividend yield: 8.8% • 4 yrs dividend growth (CAGR): 4% • Latest dividend increase 4% • Dividend (FCF) payout: 77%ImageFY18 to FY22 • FCF per share +1% CAGR, all of it through share count reduction -1% CAGR ,Total FCF remained flat ($8.1 B for FY18 and FY22) • Dividend per share +6% Imagecash flow pictureFrom previous tweetFY18 and FY22 ; FCF is the same $8.1 BWith dividend/share outpacing FCF/share growth the consequence is in the payout ratio (from 66% to 82%)TTM dividend payout (FCF improve for H1´23) is now at 77%Image2 metrics to keep trackSmokeable erosion and retail shareVolume has declined at -5% CAGR since FY08This has accelerated over the last 2 years