15 Best S&P 500 Dividend Stocks to Buy in 2026

10. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 72

Dividend Yield as of January 21: 3.00%

On January 16, Stifel analyst Tore Svanberg raised Texas Instruments Incorporated (NASDAQ:TXN)’s price target to $200 from $170 and maintained a Hold rating on the stock. The update came as part of Stifel’s Q4 earnings preview for the analog, connectivity, and processors group. In the report, the firm said demand for analog chips appears to be coming back. At the same time, AI infrastructure spending remains solid, and edge AI is becoming “more of a reality,” according to the analyst.

Texas Instruments serves a wide range of end markets. One key area is AI-focused data centers, where its networking, power management, and thermal management semiconductors play an important role. The company also supplies products used in industries where AI is expected to have a larger impact over time.

Its chips are used across aerospace and defense, building and industrial automation, robotics, communications, and personal electronics. Many of these markets are expected to step up investment in AI features and integration in the coming years. In practice, that could mean more customers building AI into their systems, which may increase demand for analog semiconductors as products become more complex and require additional supporting components.

Texas Instruments Incorporated (NASDAQ:TXN) is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment, and enterprise systems.