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Buyback Boosts Texas Instruments

The chipmaker also boots its dividend.

SAN FRANCISCO -- Shares of

Texas Instruments

(TXN) - Get Report

rose Friday after the company announced a stock buyback and plans to hike its dividend.

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The Dallas chipmaker said it will repurchase $5 billion of its common stock, bringing its total outstanding buyback authorizations to roughly $8.8 billion.

According to TI, the company's board has approved $20 billion in buybacks since 2004, lowering the company's outstanding share count by 17% through the end of the second quarter of 2007.

TI also announced Friday that it will boost its quarterly cash dividend by 25%, bringing the new quarterly dividend rate to 10 cents a share.

TI said the first distribution of the new dividend will be payable Nov. 19 to stockholders of record on Oct. 31, contingent upon formal declaration by the board of directors at an October meeting.

Shares were up 3.3%, or $1.19, at $36.96 in midday trading Friday.