ROP vs TXN: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | ROP | TXN |
|---|
| Dividend Yield | 0.97% | 2.49% |
| Annual Dividend | $3.38 | $5.50 |
| 5-Year CAGR | 18.2% | 14.6% |
| Payout Ratio | 23% | 1% |
| Consecutive Years | 0 | 0 |
| Price | $321.99 | $226.09 |
Yield Comparison
Texas Instruments Inc (TXN) currently yields 2.49%, which is solid for the broader market. That's 1.52% more than Roper Technologies Inc (ROP), which yields 0.97%. In dollar terms, TXN pays $5.50/share annually versus ROP's $3.38/share.
Dividend Growth
Over the past five years, ROP has grown its dividend at a 18.2% CAGR compared to TXN's 14.6%. 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's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x. TXN's dividend safety is rated "Safe." The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x. TXN's payout ratio of 1% is more conservative than ROP's 23%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in TXN generates approximately $249/year in dividend income, compared to $97/year from ROP — a difference of $152/year. At $100,000, that gap widens to $1520/year.
Verdict
- Best for income: TXN
- Best for growth: ROP
- Best for safety: TXN
Frequently Asked Questions
Which has a higher dividend yield, ROP or TXN?
Texas Instruments Inc (TXN) has a higher dividend yield of 2.49% compared to Roper Technologies Inc (ROP) at 0.97%.
Is ROP or TXN a better dividend growth stock?
Roper Technologies Inc has the stronger dividend growth with a 5-year CAGR of 18.2%, compared to Texas Instruments Inc's 14.6%.
Which is safer for dividend income, ROP or TXN?
Roper Technologies Inc's dividend safety is rated "Safe" while Texas Instruments Inc is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x. The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
How much income does $10,000 in ROP vs TXN generate?
A $10,000 investment in ROP generates approximately $97/year in dividends, while the same amount in TXN generates about $249/year.
Which has a lower payout ratio, ROP or TXN?
Texas Instruments Inc has a lower payout ratio of 1% compared to Roper Technologies Inc's 23%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
ROP vs TXN: which is better for retirement income?
It depends on your priorities. TXN for current income, ROP for dividend growth, TXN for safety. Many retirement investors hold both for diversification.
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