Texas Instruments is a
unique balanced asset between the growth stocks and values stocks. The company
has high earnings per share together with raising dividends and buy-back
programs. TXN stocks are traded 25% off their peak values but lost must less
that its peers, like NVidia and AMD, that lost about 60% of their market cap.
Texas Instruments
reported Q2 2022 revenues up by 14% year-on-year to $5.2 billion and EPS up by
20% year-on-year to $2.45 per share. The company allocated $2.2 billion for
investors paying the half of it as dividend and the rest was used for buy
backs. The amount of TXN stocks free float was decreased by 46% over the last
18 years. Dividend figures are constantly rising. They hit $4.6 per share in
2022 compared to $3.72 in 2020. The company has ended the quarter with $8.4
billion in cash and cash equivalents and a $7.3 billion of debt. The company heavily
invests in its development and it plans for R&D spending to hit $3.5
billion by 2025. Dividend yield at 3.5% is not very impressive but may serve as
a nice bonus to the company’s solid fiscal balance, buy-back programs and
steady growth of its business.
