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ROP vs TXN: Dividend Comparison

ROP$321.99
Roper Technologies Inc
Information Technology
vs
TXN$226.10
Texas Instruments Inc
Information Technology

Dividend data as of

Roper Technologies Inc (ROP) and Texas Instruments Inc (TXN) are both in the Information Technology sector, making them natural rivals for dividend investors. TXN offers a significantly higher 2.49% yield compared to ROP's 0.97%, a gap of 1.52%. For dividend growth, ROP leads with a 5-year CAGR of 18.2% versus TXN's 14.6%. Both stocks carry a "Safe" dividend safety rating.

Verdict

Best for Income
TXN
Higher yield at 2.49%
Best for Growth
ROP
5yr CAGR of 18.2%
Best for Safety
TXN
Lower payout ratio (1%)
Metric
Price
$321.99
$226.10
Dividend Yield
0.97%
2.49%
Annual Dividend
$3.39
$5.50
5yr Div CAGR
18.2%
14.6%
3yr Div CAGR
26.9%
20.6%
Consecutive Years
0
0
Payout Ratio
23.24%
1.01%
P/E Ratio
Market Cap
Income on $10k
$97/yr
$249/yr

Yield Analysis

ROP
0.97%
TXN
2.49%

TXN yields 1.52% more than ROP. In dollar terms, ROP pays $3.38/share vs TXN's $5.50/share annually.

Dividend Growth

ROP 5yr CAGR
18.2%
accelerating
TXN 5yr CAGR
14.6%
accelerating

ROP: Dividend growth is accelerating — the 3-year CAGR of 26.9% exceeds the 5-year rate of 18.2% and the 10-year rate of 15.5%.

TXN: Dividend growth is accelerating — the 3-year CAGR of 20.6% exceeds the 5-year rate of 14.6% and the 10-year rate of 17.8%.

Dividend Safety

ROP
Safe
Payout Ratio23%
TXN
Safe
Payout Ratio1%

ROP: The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x.

TXN: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.

Estimated Annual Dividend Income

Based on current dividend yields. Actual income may vary.

Investment
ROP
TXN
$10,000
$97/yr
$249/yr
$50,000
$485/yr
$1,245/yr
$100,000
$970/yr
$2,490/yr

What does $10,000 buy in ROP vs TXN today?

At $321.99 per share, $10,000 buys about 31.1 shares of Roper Technologies Inc (ROP). Each share pays $3.38 per year in dividends, so the position starts out generating roughly $105 per year — about $9 a month.

At $226.09 per share, $10,000 buys about 44.2 shares of Texas Instruments Inc (TXN). Each share pays $5.50 per year in dividends, so the position starts out generating roughly $243 per year — about $20 a month.

TXN is the larger income stream from day one: $138 per year more on the same $10,000 invested.

What could $10,000 of ROP or TXN income look like in 10 years?

Roper Technologies Inc (ROP) has raised its dividend about 18.2% a year over the past five years. If that pace held, the $97 per year that $10,000 generates today at the current 0.97% yield would reach $518 per year by 2036 — a 5.2% yield on the original cost.

Texas Instruments Inc (TXN) has raised its dividend about 14.6% a year over the past five years. If that pace held, the $249 per year that $10,000 generates today at the current 2.49% yield would reach $972 per year by 2036 — a 9.7% yield on the original cost.

On those trailing rates, TXN pays more in 2036: $972 versus $518 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.

When would ROP's dividend growth overtake TXN's higher yield?

Not within a realistic holding period. Roper Technologies Inc (ROP) is growing its dividend faster (18.2% vs 14.6% a year), but the starting-yield gap — 2.49% for TXN vs 0.97% for ROP — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, TXN's head start is decisive.

Can ROP and TXN afford their dividends?

Roper Technologies Inc (ROP) earns $14.21 per share against $3.38 paid out in dividends — 4.2x coverage (a 23% payout ratio).

Texas Instruments Inc (TXN) earns $5.45 per share against $5.50 paid out in dividends — 1.0x coverage (a 1% payout ratio).

ROP's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for TXN if earnings weaken.

Which fits an early-retirement income portfolio better, ROP or TXN?

For income you need right now, Texas Instruments Inc (TXN) leads: $100,000 invested today pays about $207 a month at the current 2.49% yield, versus $81 a month from Roper Technologies Inc (ROP) at 0.97%.

With a decade or more before the income is needed, ROP's faster dividend growth (18.2% vs 14.6% a year) matters more than the starting yield — raises compound into the larger paycheck over time.

Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.

$10,000 with DRIP: projected annual income

If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $570/yr in ROP vs $1,243/yr in TXN by year 10.

Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.

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Frequently Asked Questions

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