  In this work we computationally study the effect of microstructure on
saturation magnetostriction of Terfenol-D (Tb$_{0.27}$Dy$_{0.73}$Fe$_{2}$) by
means of Finite Element Method. The model is based on the equilibrium
magnetoelastic strain tensor at magnetic saturation, and shows that the crystal
orientation might play a more significant role on saturation magnetostriction
than the morphology of the grains. We also calculate the dependence of
saturation magnetostriction on the dispersion angle of the distribution of
grains in the oriented growth crystal directions $<011>$ and $<111>$, finding
that not highly oriented grain distributions reduce saturation magnetostriction
significantly. This result evinces the importance of high-quality control of
grain orientation in the synthesis of grain-aligned polycrystalline Terfenol-D,
and provides a quantitative estimation for the range of acceptable values for
the dispersion angle of the distribution of the oriented grains.
