Texas Instruments Incorporated (NASDAQ:TXN) is included among the 12 Reliable Dividend Stocks for Maximum Income.
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Texas Instruments Incorporated (NASDAQ:TXN) has long been known for producing chips used 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 efficiency and stability, maintaining high profit margins that highlight its advantage in designing analog and embedded chips used for 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 quarter.
Rising demand from data centers reinforces Texas Instruments Incorporated (NASDAQ:TXN)’s edge in analog and embedded chip manufacturing, particularly in areas like power conversion and signal processing. This growing strength could enable the company to maintain healthy cash flows and continue 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.
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