Two tech leaders with reliable dividends

Article Excerpt

TEXAS INSTRUMENTS INC. $111 (Nasdaq symbol TXN; High-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 981.7 million; Market cap: $109.0 billion; Dividend yield: 2.2%; Dividend Sustainability Rating: Above Average; www.ti.com) is a leading maker of analog computer chips. They convert inputs, such as touch, sound and pressure, into electronic signals that computers can understand. Starting in November 2017, the company raised its quarterly dividend by 24.0%, to $0.62 a share from $0.50. The new annual rate of $2.48 yields 2.2%. In the quarter ended March 31, 2018, revenues increased 11.4%, to $3.8 billion from $3.4 billion a year earlier. That was due to strong demand from industrial and automotive clients. Earnings jumped 37.0%, to $1.37 billion, or $1.35 a share, in the first quarter to $997.0 million, or $0.97 a share, a year earlier. Excluding a charge related to U.S. tax reforms, earnings per share rose 24.7%, to $1.21 from $0.97. The company spent $385.0 million (or 10.2% of its sales) on research in the…