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3 Tech Stocks for Retirement: 1 Stock, 1 ETF and 1 Mutual Fund

Tech stocks do, in fact, have a place in retirement portfolios

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Tech Stocks for Retirement: Texas Instruments (TXN)

Cloud computing, mobile apps, big data — it doesn’t matter. All of tech runs on semiconductors. And for retirement investors, the chip makers could be some of the best tech stocks to buy. And Texas Instruments Incorporated (NASDAQ:TXN) could be the best.

The reason is that TXN makes both boring analog chips — like the kind in your toaster — as well as more exciting fare for heads-up displays, motion controllers, touch screens, etc. So in one hand, TXN has plenty of steady cash flows from its analog business. The other is filled with higher-margined chips that provide it with amazing profit boosts.

What does that really do? Make TXN a dividend machine.

Last year, Texas Instruments raised its dividend by 32% and that mega increase marked the 13th consecutive year of dividend raises. Even better is that the firm’s payout ratio is in the 40% range. Meaning there is plenty of room for future increases as well.

With revenues continuing to rise, TXN’s current yield of 2.5% could be a lot higher for investors in the future.

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Article printed from InvestorPlace Media,

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