Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
ALERT

Strong Defense Leads to 25% Gain for Best Dividend Aerospace Pick

Dividend logo

Texas Instruments (TXN ) is extremely shareholder-friendly: management has a stated policy of returning 100% of free cash flow to shareholders through dividends and share repurchases. It currently pays a $1.52 per share annualized dividend, which results in an attractive 2.5% dividend yield. This is significantly higher than the S&P 500 Index, which has a 2% dividend yield on average. In addition, Texas Instruments stock has been a notable outperformer for an extended period; based on its May 25 closing price, the stock has gained 10% over the past one year.

Investors should still feel comfortable buying the stock, since it is still attractively priced: its valuation remains on-par with the market multiple. It is reasonable for Texas Instruments to hold an above-average multiple, given the high quality of its business. The company has restructured itself and as a result holds significant scale and competitive advantages that should provide it with earnings stability going forward. It does face certain headwinds, including the strengthening US dollar, but these are cyclical factors. Over the long term, investors should feel comfortable with Texas Instruments’ attractive valuation.

To read the Full Story, Go Premium or Log In

Popular Articles

Premium Shutterstock 434272999
News

The Market Wrap for July 28: Fed Stands Firm

This week, investors were greeted with an old foe: the Federal Reserve.

Traders were focused on...

Premium Shutterstock 512665549
News

Get to Know QLAC

One of the biggest problems facing investors these days is longevity. Thanks to advances in...

Dividend Investing 101

Performance of Dividend-Paying Stocks Over the Long Term

Most value investors realize the power of long-term investing strategies in creating and...