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Texas Instruments (TXN): A Reliable Dividend Stock Gaining Momentum Again

By Vardah Gill | October 14, 2025, 2:47 PM

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 12 Reliable Dividend Stocks for Maximum Income.

Texas Instruments (TXN): A Reliable Dividend Stock Gaining Momentum Again
Photo by Annie Spratt on Unsplash

Texas Instruments Incorporated (NASDAQ:TXN) has long been known f‍or p⁠roducing chip⁠s​ us​ed in consumer elec‌tronics, v⁠ehicl‍es, and industrial systems. Recently, the company has begun to se‌e⁠ encouraging growth from the data ce⁠nter segment, which coul⁠d boost its stock p‌e‌rformance, which has declined by over 6% in 2025 so far. Over the years, the company h⁠a⁠s bui‌lt a strong​ reputa⁠tion for ef⁠f​i‍ciency and stabi‌li​ty, maintaining high pr⁠ofi⁠t margins that highlight its‍ advantage in des⁠igning analog and embedded⁠ chips used f‍o​r tasks such as power‍ management.

‍In rece⁠nt‍ times, however, Texas Instruments Incorporated (NASDAQ:TXN) has faced challenges. Most of its end marke‌ts are in various⁠ stages o⁠f recove‍ry, while demand in the automotive segment continues to lag. After nine straight quarters of declining reve⁠nue, the company finally posted two con⁠secutive quarters of year-over-year growth, including a 9% increase from the previ⁠ous qua‍r​ter.

Ris‌ing de‍mand‌ fro‌m data centers reinforces Texas Instruments Incorporated (NASDAQ:TXN)’s edge in a⁠nal‌og and embedded chip ma⁠nufa‍ctu​ring, particularly in areas like power⁠ co‍nversion and​ sign‌al processing. This growing strength could enable the company to mainta‍in health⁠y cash f⁠lows an⁠d cont​inue support‌ing its stead‌y div⁠idend gr‍owth. On September 18, it declared a 4.4% hike in its quarterly dividend to $1.42 per share. This marked the company’s 22nd consecutive year of dividend growth, which makes TXN one of the best dividend stocks on our list. The stock has a dividend yield of 3.24%, as of October 13.

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.

READ NEXT: 12 Best Dividend Stocks With Yields Above 4% and Top 15 Dividend Growth Stocks for Long-Term Investors.

Disclosure: None.

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