13 Best Technology Dividend Stocks to Invest in

8. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 66

Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor company that specializes in analog and embedded chips. The company currently pays a quarterly dividend of $1.36 per share and has a dividend yield of 3.47%, as of April 10. In 2024, it achieved its 21st consecutive annual dividend hike, which makes TXN one of the best dividend stocks from the tech sector.

Texas Instruments Incorporated (NASDAQ:TXN) earns most of its revenue through two main segments: Analog and Embedded Processing. One of its key strengths lies in its in-house manufacturing operations, which give the company greater control over production and its supply chain.

Over the past year, Texas Instruments Incorporated (NASDAQ:TXN) has focused on how it allocates capital to sustain a healthy free cash flow. This strategy includes continued investment in research and development, as well as expanding its manufacturing footprint. Texas Instruments also prioritizes building strong relationships with its customers, aided by its digital sales platform, TI.com. Its dedication to sustainable practices not only meets regulatory expectations but also supports its public image and environmental impact.

Texas Instruments Incorporated (NASDAQ:TXN) has cemented its leadership position in the semiconductor industry. Under the guidance of former CEO Rich Templeton, TI became a standout in dividend growth, raising its payout at an annual rate of 24% between 2004 and 2023. In FY24, the company posted $6.3 billion in operating cash flow over the trailing twelve months, along with $1.5 billion in free cash flow. During the fourth quarter alone, it returned $4.8 billion to shareholders through dividends.