15 Best Dividend Stocks to Buy for Long-Term Passive Income

7. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 66

American semiconductor company, Texas Instruments Incorporated (NASDAQ:TXN) specializes in analog and embedded chips. On April 24, the stock surged 8% in premarket trading following the semiconductor company’s report of first-quarter earnings and revenue that surpassed analysts’ forecasts. The company posted revenue of $4.07 billion, which showed an 11% growth from the same period last year. Its net income for the period came in at $1.18 billion, and its EPS came in at $1.28, which beat analysts’ estimates by $0.18.

Texas Instruments Incorporated (NASDAQ:TXN) has provided a second-quarter outlook, projecting revenue between $4.17 billion and $4.53 billion, with earnings per share ranging from $1.21 to $1.47. Additionally, the company now expects its effective tax rate for the second quarter to be around 12% to 13%.

Texas Instruments Incorporated (NASDAQ:TXN) also generated strong cash, which fulfilled its shareholders’ obligations. For the trailing 12 months, TI generated $6.2 billion in cash flow from operations, highlighting the strength of its business model, the quality of its product portfolio, and the advantages of 300mm production. Free cash flow for the same period amounted to $1.7 billion. Over the past year, Texas Instruments invested $3.8 billion in research and development (R&D) and selling, general, and administrative expenses (SG&A), allocated $4.7 billion toward capital expenditures, and returned $6.4 billion to its shareholders.

On April 18, Texas Instruments Incorporated (NASDAQ:TXN) declared a quarterly dividend of $1.36 per share, which was in line with its previous dividend. The company has been raising its payouts for 21 consecutive years, which makes TXN one of the best dividend stocks for passive income. As of April 24, the stock supports a dividend yield of 3.36%.