Retirement Stock Portfolio: 7 Safe Dividend Stocks To Invest In

3. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 57

Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based multinational semiconductor company that produces analog and embedded chips. The company concentrates on analog processing and embedded processing segments, both of which are vital. Analog technology handles real-world signals, while embedded technology enables various automated functions in electronics. Recently, the company has been focusing on enhancing its manufacturing capabilities, especially in 300mm wafer production, with the goal of achieving cost efficiencies. The stock has surged by over 11% since the start of 2024.

In the third quarter of 2024, Texas Instruments Incorporated (NASDAQ:TXN) reported revenue of over $4.1 billion, compared with $4.5 billion in the same period last year. The company’s operating profit and net income came in at over $1.55 billion and $1.36 billion, respectively. Its cash position remained strong. The company reported an operating cash flow of $6.2 billion for the trailing 12 months, 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 was $1.5 billion. Over the past year, the company invested $3.7 billion in R&D and SG&A, $4.8 billion in capital expenditures, and returned $5.2 billion to its shareholders.

The London Company mentioned TXN in its Q2 2024 investor letter. Here is what the firm has to say:

“Texas Instruments Incorporated (NASDAQ:TXN) – TXN rallied in 2Q despite declining revenue in its latest update. TXN is beginning to see some encouraging signs of destocking nearing an end and some sub segments of the market are experiencing improving demand. TXN continued to spend on capex and should begin to see positive benefits to cash flow next year from the CHIPS Act.”

Texas Instruments Incorporated (NASDAQ:TXN) has a strong dividend history, having raised its payouts for 21 consecutive years. During this period, the company has raised its payouts at a CAGR of 24%. Currently, it pays a quarterly dividend of $1.36 per share and has a dividend yield of 2.89%, as recorded on December 17.

The number of hedge funds tracked by Insider Monkey owning stakes in Texas Instruments Incorporated (NASDAQ:TXN) grew to 57 in Q3 2024, from 50 in the previous quarter. The total value of these stakes is nearly $3 billion. With over 4.2 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q3.