Texas Instruments Incorporated's (TXN) Future Outlook: Sustaining its Edge Among Profitable Dividend Stocks

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 13 Most Profitable Dividend Stocks to Buy Right Now.

Texas Instruments Incorporated (NASDAQ:TXN), widely recognized for its analog and embedded chips, plays a key role in powering a broad range of technologies — from factory automation systems and automobiles to medical devices and power infrastructure. After navigating a bumpy stretch in the semiconductor market, the Dallas-based company appears to be regaining steady ground this year, maintaining its trademark focus on long-term cash generation and reliable shareholder returns. The blend of improving fundamentals and consistent capital distributions continues to define its appeal for investors.

In its latest quarterly report, Texas Instruments Incorporated (NASDAQ:TXN) reaffirmed what it considers the company’s guiding principle. As CFO Rafael Lizardi explained, the goal remains to drive “long-term growth of free cash flow per share.” That mindset underpins the company’s major investments in 300-mm manufacturing, a move aimed at strengthening its long-term cost advantages. While these projects have kept capital spending high in the short term, they’re expected to enhance margins and expand the company’s ability to return more cash to shareholders over the coming years.

Speaking of the company’s shareholder return, Texas Instruments Incorporated (NASDAQ:TXN) gave good news to investors in September by announcing a 4.4% hike in its quarterly dividend. This took the company’s dividend growth streak to 22 years. It now pays a quarterly dividend of $1.42 per share for a dividend yield of 3.12%, as of October 5.

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.