Texas Instruments: Instead Of Buybacks, Give Us Dividends Or Lattice


  • Texas Instruments shares have significantly outperformed both the S&P and SOXX over the past year.
  • The company’s reputation for stellar capital allocation is being hurt by management’s preference for share buybacks over growth and dividends.
  • I examine Texas Instruments’ current valuation and dividend strength to see if it is a buy at current levels.
  • While its future looks bright, I recommend waiting to add shares until the economic outlook becomes clearer.

Flag of USA on a processor, CPU Central processing Unit or GPU microchip on a motherboard. Congress passes the CHIPS Act of 2022 to strengthen domestic semiconductor manufacturing, research and design.


Texas Instruments (NASDAQ:TXN) is down only 12% over the past year compared to -19% for SPY and -37% for its largest sector ETF SOXX. It delivered solid earnings throughout the year, and its analog chip business largely escaped the slowdown suffered by leading-edge chip

Data by YCharts

TXI Manufacturing Footprint

Manufacturing Footprint (Texas Instruments)

TXN Share Buybacks

Texas Instruments

TXN Cash On Hand

TXN Cash On Hand (Macrotrends.com)

LSCC Growth Profile

Seeking Alpha

Data by YCharts

TXN Dividend Score

Seeking Alpha

TXN Growth Metrics

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TXN Payout History


TXN Valuation


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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