Dividend Yield: 3%
Chip-maker Texas Instruments (TXN) has provided investors with the double bonus of strong share appreciation and a surefire dividend in recent years. During the past 12 months, TXN has soared more than 40% to hit 13-year highs … and even then, the tech stock’s quarterly 30-cent per share payout still yields more than 3%.
Texas Instruments has been paying dividends since 1962, and its annual payout has soared from less than 9 cents per share to more than a buck in the past decade alone. In fact, TXN already increased its dividend twice this year — by 33% and then another 7%. No wonder the company’s trailing dividend per share growth was the fifth-highest out of the entire S&P 500 at the end of Q2.
And TXN’s dividend still looks as sustainable as ever; the company’s total 2013 payout will cost it only half of its expected full-year earnings.
TI is well-positioned with products that cater to the growing mobile Internet trend, as well as an eye on wearable tech. Toss in expectations for 9% long-term earnings growth — including an estimate for 18% income improvement for 2013, followed by a 16% improvement for 2014 — and there’s plenty of reason to expect more of the same from TXN.