Besides $UNH (+1.58%) , $PEP (+1.98%) , $MRK (+0.38%) , $HD (-1.97%) and other stocks with strong dividend growth, the $TXN (-0.3%) interesting in the tech sector.
Div. yield: 3.5%
Div. growth >15% (p.a. 10 yrs)
YoC over 10% in 10 years, IF $TXN (-0.3%) continues to increase strongly.
$TXN (-0.3%) manufactures semiconductor electronics. These electronics are in cars, factories, solar panels, medical devices, washing machines and our calculators. Quite simple in contrast to the conventional chip manufacturers.
$$TXN (-0.3%) is the world market leader in analog chips with a market share of around 20%. Number 1 ahead of $IFX (-2.43%) and Analog Devices. Texas Instruments is solid, conservative and avoids risky hypes such as AI or gaming chips.
Fast financials:
Sales stagnated the last two years over -10% from 20 bn (2022) to 15.6 bn (2024). This year, sales stabilized at 16.6 bn (TTM). Moderate increase in recent years. The gross margin is >60% on annual average, which is quite stable for the company. The company's net profit is in the range of 30-40% of sales.
The historical average FCF payout ratio of dividends is 62% with the strong increases in the past.
Texas Instruments is in the same position as many other companies, the market cycle is currently playing against them. For a dividend investor, Texas Instruments may become interesting to secure a high YoC yield for the future.
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