Such attributes show that Texas Instruments stock should not only weather this economic storm, but it should also deliver returns and increased payouts as the economy recovers.
Texas Instruments Incorporated (NASDAQ:TXN) declared a quarterly dividend on Thursday, July 16th. Dividend stocks are an excellent choice for people who want to receive regular sums of cash from their investment portfolios while retaining the upward potential of stocks. And a 21% free-cash-flow margin in a bad quarter is nothing to balk at. The next Texas Instruments Inc. dividend will go ex tomorrow for 90c and will be paid in 19 days. The current dividend yield for Texas Instruments as of July 27, 2020 is 2.78%. Such attributes show that Texas Instruments stock should not only weather this economic storm, but it should also deliver returns and increased payouts as the economy recovers. For an extended period of time, our dividend rate had held constant at $0.085 per share annually. As the basic building blocks for all things tech, semiconductor companies haven't had the wind taken out of their sails by uncertain economic times. As for the free cash flow itself, TI has a long-standing policy of returning all of it to shareholders. Why Texas Instruments Is a Great Dividend Stock. As the world eventually heals from the coronavirus, TI's business will rally. For that matter, it should be mentioned that while Bill Vix writes blogs, articles, and website content for clients who want the facts presented in a way that is digestible to their target audience. Its forward P/E ratio of 32.1 comes in well above 21, which is the average forward multiple over the last five years. Is Texas Instruments Stock a Buy? TXN's next quarterly dividend payment will be made to shareholders of record on Monday, August 17. As TI began to shift its product portfolio to higher-profit Analog and Embedded Processing products, both of which require less capital spending, the company began to generate more cash flow from operations, and returned that cash to shareholders in the form of increased dividends and share repurchases.The historical dividend information provided is for informational purposes only, and is not intended for trading purposes. Why Texas Instruments Is a Great Dividend Stock: Sa: Texas Instruments: Pricey, But Still Attractive: Mi: ROUNDUP/Aktien New York Schluss: Dow trotzt Spannungen zwischen USA und … TXN Dividend History & Description — Texas Instruments Inc. Texas Instruments designs and makes semiconductors that it sells to electronics designers and manufacturers. With over 10 years of professional writing experience, his ultimate goal is to simply and effectively communicate useful information using the most technologically relevant methods.This site uses Akismet to reduce spam. TI has delivered dividends to its shareholders uninterrupted since it first began making dividend payments in 1962*. In spite of some expected headwinds for at least the rest of this year, it may be surprising that TI stock is close to breakeven with where it started 2020. After all, Texas Instruments is involved in the manufacturing of semiconductors, without which much of the modern world wouldn’t be possible. However, what is particularly interesting about its products is that a huge portion of its sales come from the automotive industry, so much so that its sales to its automotive and industrial customers make up 56 percent of its total revenues. Talk about efficiency. Many of its end customers have been deeply impacted by the current crisis, most notably in the areas of auto and smartphone manufacturing. Stock Advisor launched in February of 2002. Dark Mode Home Homepage Membership Levels General Discussion Complete Stock List Value Investing Forum Value Conference The book Podcast Membership Data Coverage Founder's Message Free Trial Screeners GuruFocus Screeners All-In-One Screener Dividend Income Portfolio Ben … This also adds to the likelihood that payout hikes will continue despite the cost of the dividend.TI stock is not cheap. For slow-and-steady tech dividend payments, it’s hard to argue against this chip-making giant. Even in a bad quarter, TI generated $690 million in free cash flow (revenue less cash operating and capital expenses). More than just a health and economic catastrophe, That bodes well for Texas Instruments (TI) and the rest of the industry. And where does all that cash go? COVID-19 has put a dent in performance for the Dallas-based chip giant like it has most semiconductor stocks. Data source: Texas Instruments. Indeed, it was a better buy-in opportunity in March, when TI stock fell as low as $93.09 per share, than it is now. Auto and phone sales are seeing falling consumer interest at the moment, and a recovery may not happen for these two important segments until 2021. However, investors have taken notice of TI in recent years. Over the last 12 months, TI's free cash flow of $5.64 billion is good for a whopping margin of 40%. The company blamed lower revenue on the automotive market, which made up about 21% of TI's revenue as of last year. It has also maintained dividend hikes before, even during difficult economic times. What Makes Texas Instruments a Good Dividend Stock?