Texas Instrument Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage supervisors, voltage references, and lighting products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in end markets, including amplifiers, data converters, interface products, motor drives, clocks, and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. The company also provides DLP products primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. It markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
- Market Cap: 147.617 billion
- PE Ratio: 17.05
- EPS: 9.54
- Dividend Yield: 3.07%
- 12 Month Gain: 36%
Texas Instrument is one of the largest designers and sellers of semiconductors globally. It develops analog integrated circuits and embedded processors that are subsequently sold to electronics manufacturers.
The company’s product portfolio consists of tens of thousands of products that are used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices and managing and distributing power.
Texas Instruments’ focus on these segments provides a combination of stability and strong cash generation, owing to the products’ long product life cycles and low capital-intensive manufacturing. Leading industry products, a diverse portfolio, unique technologies and manufacturing scale, and a strong reputation enable Texas Instruments to generate stable and recurring cash flows.
As a result, Texas Instruments has paid uninterrupted dividends since 1962 and it has recorded an impressive annual dividend growth rate of approximately 34.2% over the last three years. Last year marked the company’s 14th consecutive year of dividend increases, wherein Texas Instruments raised its dividend by nearly 25%.
Given its predictable cash flow generation, impressive dividend track record and reasonable payout ratio, the company should be able to continue rewarding shareholders with double-digit dividend growth in the years ahead.