Exploring TEXAS INSTRUMENTS INC (NASDAQ:TXN)'s dividend characteristics.

Our stock screener has singled out TEXAS INSTRUMENTS INC (NASDAQ:TXN) as a promising choice for dividend investors. TXN not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: TXN

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. TXN scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.73, TXN pays a better dividend. On top of this TXN pays more dividend than 90.91% of the companies listed in the same industry.
• TXN's Dividend Yield is a higher than the S&P500 average which is at 2.43.
• The dividend of TXN is nicely growing with an annual growth rate of 10.46%!
• TXN has paid a dividend for at least 10 years, which is a reliable track record.
• TXN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• The dividend of TXN is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for TXN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. TXN has earned a 6 out of 10:

• TXN has an Altman-Z score of 8.62. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
• TXN has a better Altman-Z score (8.62) than 80.00% of its industry peers.
• TXN has a Current Ratio of 5.26. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 5.26, TXN is doing good in the industry, outperforming 76.36% of the companies in the same industry.
• TXN has a Quick Ratio of 3.37. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
• TXN has a Quick ratio of 3.37. This is in the better half of the industry: TXN outperforms 63.64% of its industry peers.

Profitability Insights: TXN

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For TXN, the assigned 8 is a significant indicator of profitability:

• TXN has a better Return On Assets (14.36%) than 86.36% of its industry peers.
• Looking at the Return On Equity, with a value of 29.54%, TXN belongs to the top of the industry, outperforming 91.82% of the companies in the same industry.
• The Return On Invested Capital of TXN (15.47%) is better than 89.09% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for TXN is significantly above the industry average of 11.19%.
• The last Return On Invested Capital (15.47%) for TXN is well below the 3 year average (24.88%), which needs to be investigated, but indicates that TXN had better years and this may not be a problem.
• TXN has a better Profit Margin (30.20%) than 91.82% of its industry peers.
• With an excellent Operating Margin value of 34.29%, TXN belongs to the best of the industry, outperforming 94.55% of the companies in the same industry.
• TXN's Gross Margin of 58.02% is amongst the best of the industry. TXN outperforms 83.64% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of TXN contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.