I consider Texas Instruments (TXN) one of the best dividend growth stocks to own.
The company pays a generous dividend yielding 2.76% at $164 per share and has a stellar track record of dividend growth and share buybacks. While I expect a lower dividend growth rate of 10-12% going forward, that rate still easily outpaces the current rate of inflation, especially when reinvesting dividends.
Texas Instruments has a great management team focused on growing free cash flow as the primary driver of long-term value. The team is disciplined in allocating capital and is a top performer when measured by returns on invested capital. The company is well-positioned to benefit from a rapidly growing semiconductor industry, especially in the industrial and automotive markets in which the company leads with market share in analog and embedded systems.
Image and article originally from divgro.blogspot.com. Read the original article here.