Texas Instruments Inc. says it is increasing its dividend by 33 percent and plans to buy back up to $5 billion more of its shares.

The company will pay a 28 cent-per-share dividend on May 20 to shareholders of record as of April 30. That's up from its last dividend payment of 21 cents per share.

The authorization to buy back more stock brings its total repurchase authorization to $8.4 billion.

The company says it can consistently convert 20 to 25 percent of its revenue into free cash flow and return that, after debt repayments, to shareholders.

Shares of the Dallas-based semiconductor company rose 58 cents to $33.06 in after-hours trading Thursday.