Our capital management strategy reflects our belief that free cash flow growth, especially on a per-share basis, is most important to maximizing value over the long term, and that free cash flow will be valued only if it’s productively reinvested in the business or returned to owners.
At the core of our capital management strategy is our business model, which is firmly rooted in analog and embedded processing products and the industrial and automotive markets, combined with a set of unique sustainable competitive advantages. Our performance in 2019 showed what our business model can deliver, despite headwinds from trade tensions and an industry downturn. After investing in our people, products and capacity for the future, we again returned more than 100% of free cash ﬂow to our shareholders in the form of dividends and stock repurchases. With free cash ﬂow of $5.8 billion, or 40% of revenue, we returned $6.0 billion. Our quarterly dividend increased 17%, marking the 16th year of dividend increases. In addition, our balance sheet remained strong.
We will continue to be disciplined in executing our capital management strategy: investing in and strengthening our competitive advantages, growing free cash ﬂow per share over the long term and returning free cash ﬂow to the owners of the company.