5 Semiconductor Stocks that Pay Dividends

3. Texas Instruments Incorporated (NASDAQ:TXN)

Dividend Yield as of August 23: 2.66%

Texas Instruments Incorporated (NASDAQ:TXN) is a Texas-based manufacturing company that designs and produces semiconductors and various integrated circuits. The number of hedge funds that own stakes in the company grew to 55 in Q2 2022, from 46 in the previous quarter, according to Insider Monkey’s data. Those stakes held a combined value of over $1.6 billion.

Texas Instruments Incorporated (NASDAQ:TXN) reported Q2 cash flow from operations of $8.7 billion. The company’s free cash flow stood at $5.9 billion, representing 30% of its revenue. Its dividends were well-covered within its FCF, amounting to $1.06 billion during the quarter. In addition to this, the company generated $5.2 billion in revenue, up 13.8% from the same period last year.

Texas Instruments Incorporated (NASDAQ:TXN) pays a quarterly dividend of $1.15 per share and its shares have a dividend yield of 2.66%, as recorded on August 23. The company maintains a strong 18-year streak of dividend growth.

In June, Benchmark initiated coverage of Texas Instruments Incorporated (NASDAQ:TXN) with a ‘Buy’ rating and $205 price target, acknowledging the company’s larger product portfolio and distribution reach.