Summary
- Texas Instruments is one of the oldest tech companies in the world with decades of dividend growth tradition.
- The company is growing their dividend at an impressive rate - 20% annually over the past 5 years.
- Valuation is reasonable, and a case can be made for investing in this excellent company at this time.
I don't often review or write about companies that aren't obviously undervalued by fundamental metrics. This includes a usual requirement that the company is undervalued not only by historical valuations but also by future earnings potential and potential P/E. In this case, Texas Instruments (NASDAQ:TXN) has historically traded at a premium for at least 20 years (with small breaks). When there is this sort of obvious premium to a stock's price, then even I start considering the historical premium justified and the stock ripe for investment.
In this case, we're taking a look at Texas Instruments. The semiconductor industry is not known for overtime great dividends or long-term stock reliability. Texas Instruments is one exception, with a 50-year dividend history, and the company has weathered innumerable financial storms.
In this article, I will argue why I think the stock warrants your attention and why I think you should allow it a spot in your portfolio based on valuation metrics and stock/dividend safety.
