Updating Our High-Growth Payers: Texas Instruments Inc.

Article Excerpt

TEXAS INSTRUMENTS INC. $163 remains a buy. The company (Nasdaq symbol TXN; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares o/s: 917.9 million; Market cap: $149.6 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Above Average; www.ti.com) is a leading maker of analog chips, which convert touch, sound and pressure into the electronic signals that computers can understand. Starting with the November 2020 payment, Texas Instruments boosted its quarterly dividend by 13.3%. Investors now receive $1.02 a share instead of $0.90. The new annual rate of $4.08 yields 2.5%. Based on its experience in the 2008-2009 financial crisis and recession, Texas Instruments opted to hold its production levels steady through the current COVID-19 crisis. This strategy has let it take advantage of rebounding chip demand from manufacturers of cars and consumer electronic devices. As a result, the company’s revenue in the quarter ended September 30, 2020, gained 1.2%, to $3.82 billion from $3.77 billion a year earlier. Partly due to higher interest payments and income taxes, earnings in the quarter…

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