Texas Instruments, Inc. (NASDAQ:TXN) designs, makes and sells semiconductors to electronics designers and manufacturers worldwide. The company operates mainly through two segments, Analog and Embedded Processing. It markets and sells products through a direct sales force and through distributors. TXN was founded in 1930 and is headquartered in Dallas, Texas.
TXN is a Dividend Contender with a 12-year streak of annual dividend increases. The company pays quarterly dividends of 38¢ per share in the months of February, May, August and November. At the current price of about $58, the stock yields 2.62%.
TXN is the 9th stock that I'm transferring from my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), AbbView (NYSE:ABBV), Dominion Resources (NYSE:D), W.P. Carey (NYSE:WPC), Toronto-Dominion Bank (NYSE:TD) and Pfizer (NYSE:PFE).
In the process, I've added $788.53 to DivGro's projected annual dividend income and $1,129.52 in past dividends to DivGro's total dividend tally.
| 2013-09-16 | Bought: 50 shares of TXN at $40.55 per share: | $ | 2,027.47 |
| 2013-11-18 | Dividend on 50 shares at 30¢ per share: | $ | 15.00 |
| 2014-02-10 | Dividend on 50 shares at 30¢ per share: | $ | 15.00 |
| 2014-05-19 | Dividend on 50 shares at 30¢ per share: | $ | 15.00 |
| 2014-08-18 | Dividend on 50 shares at 30¢ per share: | $ | 15.00 |
| 2014-11-17 | Dividend on 50 shares at 34¢ per share: | $ | 17.00 |
| 2015-02-09 | Dividend on 50 shares at 34¢ per share: | $ | 17.00 |
| 2015-05-18 | Dividend on 50 shares at 34¢ per share: | $ | 17.00 |
| 2015-08-17 | Dividend on 50 shares at 34¢ per share: | $ | 17.00 |
| 2015-11-16 | Dividend on 50 shares at 38¢ per share: | $ | 19.00 |
| 2015-11-16 | Bought: 10 shares of TXN at $56.72 per share: | $ | 567.20 |
| Total Capital Invested | $ | 2,594.67 | |
| Total Dividends Received: | $ | 147.00 |
With this transfer, DivGro's projected annual dividend income increases by $91.20.
The following chart shows a 3-year history of TXN's share price and indicates when I bought shares.
Note that I routinely include commissions in transactions, whereas the chart shows the share price without commissions.
Source: Scottrade
With an annualized total return of 22%, my TXN investment has done quite well so far.
Why TXN?
Here are some reasons I like TXN and why I decided to transfer the shares to DivGro:
- TXN has a 10-year dividend growth rate of 30.1%, although the most recent dividend increase was more modest at 15.9%. That's still a great dividend increase!
- At a share price of $58, the stock yields 2.62%.
- The company is the world's largest analog chipmaker and a key supplier of embedded chips for a variety of applications.
- Morningstar assigns TXN a wide economic moat rating, mainly for its analog engineering talent.
- In acquiring manufacturing equipment at pennies on the dollar, TXN is retaining cash that could ultimately be distributed to shareholders. .
Do you own shares of TXN? Do you think TXN is a good dividend growth prospect? Please share your comments below.
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