Motley Fool’s Reuben Gregg Brewer argues Texas Instruments could benefit if AI-powered robotics expand: its analog chips help convert real-world inputs into digital signals. The stock yields about 2.2% and has raised its dividend for 23 consecutive years.
Brewer says the latest dividend increase was 7%, after annualized growth of more than 10% over the past decade; increases have slowed during a cyclical analog-chip slump. Capacity investment is pressuring profitability and cash flow, with the payout ratio at about 85%. Brewer describes leverage as manageable, citing debt-to-equity of around 0.8 and interest coverage of 13 times.
The article notes Texas Instruments was not among the 10 stocks on the Motley Fool Stock Advisor team’s list discussed there. Brewer disclosed that he owns Texas Instruments shares; Motley Fool disclosed positions in Texas Instruments, Nvidia and Tesla.
