Dividend yield: 3%
Chip-maker Texas Instruments (TXN) has soared nearly 30% since the start of the year, leaving shares of TXN stock at 13-year high. And still, the tech stock’s quarterly 30-cent-per-share payout still yields a solid 3%.
Texas Instruments has been paying dividends since 1962, with its annual payout growing from less than 9 cents per share to more than a buck in the past decade alone. And TXN already increased its dividend twice this year — by 33% and then another 7%.
Still, that payout looks as sustainable as ever, as TXN’s total 2013 payout will cost it only half of its expected full-year earnings.
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.