Texas Instruments (NASDAQ:TXN) has announced a significant increase in its quarterly dividend. The company will lift its payout by 33%, handing out $0.28 per share on May 20, to stockholders of record as of April 30. Previously, the company had paid $0.21 per share in its preceding two quarters, and $0.17 before that.

The new disbursement annualizes to $1.12 per share. This yields 3.4% on the company's current share price of $32.48.

Texas Instruments also announced an expansion of its share buyback program. The firm has authorized an additional $5 billion to purchase its own common stock, bringing the current total to $8.4 billion.

Fool contributor Eric Volkman has no position in Texas Instruments. The Motley Fool has no position in Texas Instruments. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.