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Texas Instruments: Great Total Return With Increasing Earnings In A Growing Business Sector

William Stamm profile picture
William Stamm


  • Texas Instruments S&P CFRA, three-year forward CAGR of 13%, is good and will give you good growth with the increasing world economy and population.
  • Texas Instruments' dividends are above average at 2.5% and have been increased for 14 years in a row.
  • Texas Instruments's total return overperformed the DOW average for my 52.0 month test period by 88.91%, which is great.

Texas Instruments (NASDAQ:TXN), one of the largest manufacturer and distributor of semiconductors to electronics designers and manufacturers, is a buy for the dividend growth investor and total return investor. Texas Instruments has steady growth and has plenty of cash, which it uses to buy bolt-on companies, increase the dividend each year, and buy back shares. The stock comprises 5.5% of The Good Business Portfolio, my IRA portfolio of good business companies that are balanced among all styles of investing.

When I scanned the five-year chart, Texas Instruments has a great chart going up and to the right in a steady, strong slope for all of the five years with hardly a bump down. The recent market correction gives you a chance to buy TXN at a discount.

ChartTXN data by YCharts

Fundamentals of Texas Instruments will be reviewed on the following topics below.

  • The Good Business Portfolio Guidelines
  • Total Return And Yearly Dividend
  • Last Quarter's Earnings
  • Company Business
  • Takeaways
  • Recent Portfolio Changes

I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am taking a look at. For a complete set of the guidelines, please see my article "The Good Business Portfolio: Update To Guidelines and July 2016 Performance Review". These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keeps me ahead of the Dow average.

Good Business Portfolio Guidelines

Texas Instruments passes 11 of 11 Good Business Portfolio Guidelines, a good score (a good score is 10 or 11). These guidelines are only used to filter companies to be considered in the portfolio. Some of the points brought out by the guidelines are shown below.

  1. Texas Instruments does meet

This article was written by

William Stamm profile picture
BSEE The Cooper Union, school of engineering 1966. Engineering manager Harris corp. 23 years Software development, Grumman Corp 10 years as project manager.26 years managing my own IRA accounts, in retirement now with a CAGR of 10.98%

Analyst’s Disclosure: I am/we are long BA, JNJ, HD, OHI, MO, IR, DLR, GE, PM, LB, PEP, ADP, TXN, KHC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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