Stock of the Day

October 13, 2025

Texas Instruments (TXN)

$279.12
-$1.53 (-0.5%)
Market Cap: $256.30B

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Texas Instruments Bull Case

Here are some ways that investors could benefit from investing in Texas Instruments Incorporated:

  • Texas Instruments Incorporated recently launched the ADC34DSO75 and LMI800PS chips, which are specifically engineered to manage power and telemetry in AI data centers, positioning the company as a critical infrastructure provider for the growing artificial intelligence hardware market.
  • The company has raised its quarterly cash dividend by 7% to $1.52 per share, marking 23 consecutive years of payout increases and offering a reliable income stream with a yield of approximately 2.1% for income-focused investors.
  • Texas Instruments Incorporated is transitioning to 300-millimeter wafer fabrication in the United States, a strategic move that significantly lowers per-chip production costs and is expected to widen free cash flow margins as capital spending normalizes.
  • The stock has demonstrated strong momentum, rallying approximately 62% year-to-date and outperforming the broader market, with a current price of $281.74 reflecting investor confidence in its strategic pivot toward AI infrastructure.
  • As an analog semiconductor provider, the company offers a diversified revenue stream across industrial, automotive, and consumer sectors, which provides a lower beta and acts as a shock absorber against volatility in pure-play digital technology stocks.

Texas Instruments Bear Case

Investors should be bearish about investing in Texas Instruments Incorporated for these reasons:

  • The trailing price-to-earnings ratio has risen to approximately 43, which is a significant premium for a company historically viewed as a slow-growth legacy tech play, potentially limiting upside for value-conscious investors.
  • Significant insider selling occurred in the first half of 2026, including large block sales by the CEO and CFO, which may signal that company leadership is taking advantage of the recent stock price appreciation to reduce their personal exposure.
  • The dividend payout ratio is currently elevated at around 86%, leaving limited room for future dividend increases unless the anticipated expansion in free cash flow from the new manufacturing facilities materializes as projected.
  • Short interest has crept up to nearly 20 million shares by late September, representing just over 2% of the float, indicating that some market participants are betting against the stock's continued rise following its prolonged upward run.
  • The aggressive capital expenditure cycle required for the domestic 300mm fab build-out has weighed on free cash flow in the short term, creating a period of financial pressure before the anticipated cost efficiencies and margin improvements are fully realized.

Dividend Growth Continues as 3 Big Stocks Raise Payouts

Written By Leo Miller on 9/30/2025

Dividend increases

Texas Instruments (NASDAQ: TXN), T-Mobile US (NASDAQ: TMUS), and Target (NYSE: TGT) are three big-name firms in the United States that are giving income investors something to cheer about. All three recently announced dividend increases, helping boost the yield shareholders can expect to receive. 

Despite relatively small boosts from Texas Instruments and Target, these two stocks are still some of the highest-yielding in the market. Meanwhile, T-Mobile is lifting its moderately above-average yield in resounding fashion. Let's dive in below to see how much income these names can now offer investors.

TXN Boosts Dividend 4%, Maintains One of the Top Yields in Tech

First up is one of the biggest semiconductor companies in the world, Texas Instruments. The firm is approximately the eighth-largest chip stock in the world, with a market capitalization of $168 billion. On Sept. 19, TXN announced a new $1.42 per share quarterly dividend, a 4% increase from its previous payout. The dividend will be payable on Nov. 12 to stockholders of record on Oct. 31.

Although the increase percentage is relatively small, Texas Instruments continues to hold one of the highest dividend yields in the tech sector. The firm’s indicated yield now moves to just under 3.1%. This gives the company the third-highest yield among large-cap U.S. tech stocks and the second-largest among U.S. large-cap chip stocks. Notably, Texas Instruments has now announced a dividend increase for 22 years in a row.

Despite being one of the largest and most recognizable semiconductor stocks, Texas Instruments has greatly underperformed its industry over the past few years. The stock’s five-year total return of 54% falls way short of the 185% total return of the iShares Semiconductor ETF (NASDAQ: SOXX).

T-Mobile Announces Big Dividend Increase Amid CEO Shift

Next up is Big Three telecom stock T-Mobile. On Sept. 18, the company announced a very substantial 16% increase to its quarterly dividend. The new $1.02 per share dividend is payable on Dec. 11 to stockholders of record as of the close of business on Nov. 26, 2025. This moves T-Mobile’s indicated dividend yield to a solid 1.7%, significantly exceeding the approximately 1.1% yield of the S&P 500 Index.

This dividend increase came just days before T-Mobile announced a change in the company’s top leadership position: Chief Executive Officer (CEO). On Nov. 1, Srini Gopalan will replace current CEO Mike Sievert. Sievert, who first became CEO in May 2020, oversaw an incredible rally in T-Mobile’s share price.

Overall, shares have provided a total return of more than 180% since Sievert took over, adding over $150 billion in market capitalization. T-Mobile says this makes Sievert “the most value-creating CEO in global telecom history," leaving Gopalan a massive pair of shoes to fill. The dividend increase provides a level of confidence that T-Mobile can continue performing well despite the shake-up.

Target: 5.2% Yielder Looks to Turn Performance Around With Fresh Blood in 2026

Lastly, consumer staples giant Target is also sweetening the pot for income investors. On Sept. 17, the $40 billion company declared a new quarterly dividend of $1.14. This is only a 1.8% increase over Target’s previous payment of $1.12 per share; however, the stock's yield is still eye-catching.

Now, Target’s indicated dividend yield stands at approximately 5.2%, clearly positioning it as a high-yield stock. Among U.S. large-cap consumer staples stocks, Target’s yield ranks in the top 10 highest. It is also in the top 25, highest of all stocks in the S&P 500 Index.

Target’s latest dividend comes after the company also recently appointed a new CEO. Michael Fiddelke will succeed Brian Cornell on Feb. 1, 2026. However, unlike T-Mobile, the change doesn’t come amid a fantastic showing from the company’s previous leader. Since Cornell became CEO on Aug. 12, 2014, Target has achieved a total return of just 109%. That comes in around 30% below the S&P 500 consumer staples sector, and several magnitudes below the overall index. Target is hoping that Fiddelke can turn the tide going forward.

Capital Returns Remain a Priority for These Stocks

Overall, these three stocks are showing their commitment to returning capital to shareholders, regardless of how well they are currently performing. T-Mobile’s increase stands out in particular, adding a lot of juice to its dividend. This is a good way to start off Gopalan’s tenure, signaling strength from the company despite shares returning less than 9% so far in 2025.

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