Texas Instruments Incorporated (NASDAQ:TXN) has announced a 7 percent increase in its dividend this afternoon. The company made the announcement after the market closed on Thursday. The company said that it would raise its dividend from 28 cents per share to 30 cents per share.

Texas Instruments

The first new dividend payment will be made on November 18, according to the statement from the company, and will be paid to shareholders on record on October 31. The company said that the higher dividend was part of the company’s wider capital management strategy.

Texas Instruments dividend

Texas Instruments Incorporated (NASDAQ:TXN) said that the company is able to generate cash at a high rate and that it likes to return that cash to shareholders. The higher dividend is part of that plan. The latest rise brings the total increase in the company’s dividend to 43 percent this year alone.

Texas Instruments Incorporated Earnings are not actually up this year, making the increased capital reallocation interesting. Texas Instruments Incorporated revenue is down in 2013 and as a result the company is expected to earn $1.91 per share this year. Last year the company earned $1.99 per share.

Texas instruments stock

Texas Instruments Incorporated (NASDAQ:TXN) stock has risen by more than 30 percent so far in 2013 as the stock market boomed with the Federal Reserve’s QE policy behind it. The firm’s total gain in 2013 sets it at a higher point than it has traded at for year.

This week’s trading has seen the company’s shares rise above $40 for the first time since the heady days of the 20th century tech bubble. The company is one of the older players in the tech world, and unlike many it’s been paying dividends since for more than 25 years.

Stock in Texas Instruments Incorporated (NASDAQ:TXN) rose by three sense after close of market in response to the increase in the company’s dividend.