TEXAS INSTRUMENTS INC. $28 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $30.8 billion; Priceto- sales ratio: 2.4; Dividend yield: 3.0%; TSINetwork Rating: Average; www.ti.com) is selling more chips to tablet computer makers. However, its sales to smartphone manufacturers are declining. That’s because these clients are making more of their own chips instead of relying on outside suppliers.
Even so, Texas Instruments continues to do a good job of controlling its costs. That let the company raise its quarterly dividend by 23.5%, to $0.21 a share from $0.17. The new annual rate of $0.84 yields 3.0%.
Texas Instruments is a buy.