Traditionally, the tech sector has not been a source of
dividend stocks. Many tech companies, particularly those at earlier stages of
their development, do not pay dividends at all. Instead, they typically need to
reinvest as much cash flow as possible back into growing the business. And even
among tech companies that do pay dividends to shareholders, yields are usually
low.
However, in rare cases investors can find highly profitable,
mature tech companies with enough cash flow to pay high dividend yields to
shareholders. For example, Texas Instruments (TXN) currently has a 3.2%
dividend yield, which beats the average yield in the S&P 500 Index by a
considerable margin. And, Texas Instruments is a dividend growth stock. It has
raised its dividend for 15 consecutive years, including a 24% increase in 2018.
Texas Instruments qualifies as a Dividend Achiever, a select group of stocks
with 10+ consecutive years of dividend growth.
Texas Instruments is a unique stock. It offers a mix of high
yield and dividend growth, which makes the stock attractive for income and
growth investors.
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