Adding Texas Instruments Incorporated (TXN) to Your Dividend Stock Portfolio for Long-Term Income

Texas Instruments Incorporated (NASDAQ:TXN) is included among the Best Stocks for a Dividend Stock Portfolio.

Texas Instruments Incorporated (NASDAQ:TXN) is a long-standing player in the semiconductor space, specializing in analog and embedded chips. While it isn’t positioned as a pure artificial intelligence (AI) company, its broad and diverse operations give it an edge. The firm is well-placed to capitalize on the rise of edge AI, where computing and AI functions happen directly on devices rather than being processed in the cloud.

Its Analog division, the biggest revenue driver, supplies chips that regulate power and convert real-world inputs like sound, temperature, and pressure into usable signals. Meanwhile, the Embedded Processing unit offers microcontrollers and processors that act as the “brains” behind many electronic devices. With a vast catalog of products and a customer base exceeding 100,000, Texas Instruments Incorporated (NASDAQ:TXN) enjoys a stable and diversified revenue stream, making it less reliant on any single client or industry.

In addition, Texas Instruments Incorporated (NASDAQ:TXN) is a solid dividend company with 21 consecutive years of dividend growth. The company offers a quarterly dividend of $1.36 per share and has a dividend yield of 3.01%, as recorded on September 18.

While we acknowledge the potential of TXN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.