Analyzing NASDAQ:TXN's Dividend Potential.

Last update: Jan 28, 2025

Discover TEXAS INSTRUMENTS INC (NASDAQ:TXN)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NASDAQ:TXN showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How We Gauge Dividend for NASDAQ:TXN

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:TXN has been assigned a 7 for dividend:

Compared to an average industry Dividend Yield of 2.29, TXN pays a better dividend. On top of this TXN pays more dividend than 92.59% of the companies listed in the same industry.
TXN's Dividend Yield is a higher than the S&P500 average which is at 2.27.
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.

Unpacking NASDAQ:TXN's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:TXN scores a 5 out of 10:

TXN has an Altman-Z score of 8.88. This indicates that TXN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.88, TXN is in the better half of the industry, outperforming 74.07% of the companies in the same industry.
A Current Ratio of 4.12 indicates that TXN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.12, TXN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
TXN has a Quick Ratio of 2.88. This indicates that TXN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.88, TXN is doing good in the industry, outperforming 62.96% of the companies in the same industry.

Profitability Analysis for NASDAQ:TXN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:TXN, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 13.44%, TXN belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
The Return On Equity of TXN (28.24%) is better than 89.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.73%, TXN belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TXN is significantly above the industry average of 11.92%.
The 3 year average ROIC (24.88%) for TXN is well above the current ROIC(14.73%). The reason for the recent decline needs to be investigated.
TXN has a Profit Margin of 30.52%. This is amongst the best in the industry. TXN outperforms 92.59% of its industry peers.
The Operating Margin of TXN (34.15%) is better than 94.44% of its industry peers.
The Gross Margin of TXN (58.14%) is better than 82.41% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of TXN

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.