Chip stocks have taken the market by storm over the past several years, racking up huge returns in many cases. However, many of these high-flying stocks are not returning value to their shareholders in the form of dividend income. Thankfully, there are companies in this industry that can be looked at to provide dividends. Below, I'll detail three of these firms.
Everything's Bigger (Including Dividends) in Texas
First up is Texas Instruments (NASDAQ: TXN). The integrated device manufacturer (IDM) has a next 12 months forecasted dividend yield of 2.7%. Although this level is nothing groundbreaking, it's much higher than the average of U.S. stocks in this industry of around 0.6%. As an IDM, Texas Instruments both designs and manufactures its chips.
Texas Instruments' main focus is on producing analog chips. These chips take in real-world inputs, such as sound or temperature, and then convert that information into digital form. Analog chips made up 74% of the company's revenue in 2023. These chips are used largely in the industrial and automotive industries. These markets comprised 50% and 34% of the company's total sales in 2023, respectively.
The company calls its other segment "embedded processing." It focuses on executing software commands, rather than taking in real-world signals. Texas Instruments boasted an impressive 32% operating margin in the last quarter, which ...
