Is Texas Instruments (TXN) A Smart Long-Term Buy?

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Texas Instruments Incorporated (NASDAQ: TXN) and discussed its stance on the firm. Texas Instruments Incorporated is a Dallas, Texas-based semiconductor manufacturing company with a $176.4 billion market capitalization. TXN delivered a 16.43% return since the beginning of the year, while its 12-month returns are up by 17.46%. The stock closed at $191.10 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Texas Instruments Incorporated  in its Q3 2021 investor letter:

“We now hold Texas Instruments (TXN), of which has a strong growth prospect, yet attractive valuations in our view. Unlike many younger tech companies, we believe our holdings should significantly benefit from an upturn in the economy. Five of the holdings in our Income-Equity Strategies increased their dividends in the third quarter. Texas Instruments (TXN) once again showed its dedication to shareholders, increasing its dividend by 13%. This is the fourth consecutive double-digit percentage increase since we made our initial investment.”

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Based on our calculations, Texas Instruments Incorporated (NASDAQ: TXN) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. TXN was in 40 hedge fund portfolios at the end of the third quarter of 2021, compared to 50 funds in the previous quarter. Texas Instruments Incorporated (NASDAQ: TXN) delivered a -1.02% return in the past 3 months.

Earlier this month, we also shared another hedge fund’s views on TXN in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.