11 Best Halal Dividend Stocks to Buy Now

5. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 69

Texas Instruments Incorporated (NASDAQ:TXN) is one of the best halal stocks that pay dividends. On July 18, the company declared a quarterly dividend of $1.36 per share, which was in line with its previous dividend. It has been growing its payouts for 21 consecutive years. The stock supports a dividend yield of 2.51%, as of July 18.

Texas Instruments Incorporated (NASDAQ:TXN)’s cash position showed the strength of its dividend. The company’s operating cash flow over the past 12 months totaled $6.2 billion, highlighting the strength of its business model, the quality of its product offerings, and the advantages of 300mm production. Free cash flow during the same period amounted to $1.7 billion. Over the past year, the company allocated $3.8 billion to research and development and selling, general, and administrative expenses, invested $4.7 billion in capital expenditures, and returned $6.4 billion to shareholders.

Texas Instruments Incorporated (NASDAQ:TXN) operates with a solid business model focused on analog and embedded processing solutions, backed by durable competitive advantages. A central aspect of its long-term strategy for growing free cash flow per share is its disciplined capital allocation. This involves selectively funding R&D initiatives, expanding capabilities, investing in manufacturing infrastructure, considering strategic acquisitions, and consistently returning value to shareholders.