Chris Lange
8 min read
Quick Read
-
Texas Instruments just raised its quarterly dividend 7% to $1.52, marking 23 straight years of increases backed by $8.4B in trailing free cash flow.
-
Apple’s dividend consumes just 12% of earnings, leaving most of its cash for $100B in buybacks, making it the safest payout of the four.
-
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Broadcom didn’t make the cut. Enter your email to see the names that beat AVGO. The report is free. Enter your email and see if any of your stocks made the cut.
Retirees who want some tech exposure usually face a trade-off between growth and income. These four Nasdaq-listed blue chips narrow that gap by paying growing dividends out of very large free cash flow, and Texas Instruments just marked its 23rd consecutive year of dividend increases. All four yields are low. What you get here is dividend growth and balance-sheet quality, with current income as a smaller part of the return. Below, each name is ranked by safety first, then yield.
Texas Instruments: 23 Straight Years of Raises Backed by a Cash Pledge
Texas Instruments (NASDAQ:TXN) has the highest yield in the group at 1.83%, with an annualized forward dividend of $6.08 per share. The recent increase raised the quarterly payout 7% to $1.52 per share, and the stock went ex-dividend on that payment today.
Dividend safety: Management ties the dividend directly to cash generation. The CFO said the raise “reflects our continued commitment to return all free cash flow to owners over time.” Over the trailing 12 months, free cash flow was $8.4 billion on $9.9 billion of operating cash flow. The forward dividend works out to roughly 78.9% of trailing EPS of $7.71, the highest payout ratio of these four. TI holds $8.1 billion in cash and short-term investments against $13.65 billion of debt carrying a weighted average coupon of 4.11%.
——
Free Report, Just Released
Why Didn’t AVGO Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And AVGO didn’t make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
——
Track record: The dividend record goes back to 1999. The quarterly payout was as low as $0.10 in 2008 and $0.90 in 2020 before reaching today’s $1.52.
