TEXAS INSTRUMENTS INC. $47 - Nasdaq symbol TXN

TEXAS INSTRUMENTS INC. $47 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.0 billion; Market cap: $47.0 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) has increased its quarterly dividend by 11.8%, to $0.38 a share from $0.34. The new annual rate of $1.52 yields 3.2%. It has now raised its payout annually for the past 12 years.

In addition, the chipmaker has increased its share repurchase authorization by $7.5 billion. As a result, it can now buy back up to $9.3 billion of its shares, which is equal to 20% of its market cap. There are no time limits for these repurchases. Since 2005, it has bought back 40% of its outstanding shares.

Texas Instruments is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.