A chip maker Texas Instruments (NASDAQ: TXN) is largely ignored by investors today because artificial intelligence (AI) chips are all the rage. Texas Instruments makes analog chips, which are primitive and simple chips that convert real-world events into digital signals (think pressing a button). That’s not sexy, but it’s important. That’s why I’m making the bold call that boring Texas Instruments will eventually become Dividend King.
Texas Instruments pays an attractive 3% dividend. That’s at the high end of the stock’s historical yield range. If you’re a long-term equity investor, like me, now is probably a good time to look at Texas Instruments.
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Most exciting about Texas Instruments, however, is its 22-year streak of annual dividend increases. Currently, Texas Instruments is making investments in its business to prepare for future demand, and recently announced its intention to buy. Silicon Labs (NASDAQ: SLAB). Given that background, the estimated dividend increase of 4% in 2025 is very reasonable and not at all worrying.
My expectation is that Texas Instruments will eventually become the Dividend King. It will require an additional 38 years of budget growth to get there, but that is not an outside expectation. The world is becoming increasingly digital, and Texas Instruments makes chips that support the digital revolution. Chips are simple, but also important in this process.
Even AI will not exist without boring chips from Texas Instruments, noting that the company’s sales to support data centers increased by 70% year-on-year in the fourth quarter of 2025. While investors are focused on AI chipmakers such as Nvidia (NASDAQ: NVDA)Texas Instruments continues to support the backbone that enables AI and a host of other technological advancements to succeed. For example, your hot new cell phone probably has chips from Texas Instruments, noting that the company has more than 100,000 customers and sells more than 80,000 products.
The logic behind my bold call that Texas Instruments will eventually become the Dividend King is pretty simple. The world needs what this leader in the analog chip industry can do if the digital revolution is to continue. If you love dividends as much as I do, you should check out Texas Instruments while its yield is still historically attractive.
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Reuben Gregg Brewer holds positions in Texas Instruments. The Motley Fool has positions and recommends Nvidia and Texas Instruments. The Motley Fool has a policy of disclosure.
I’m Making a Bld Call on Texas Instruments Stock. Here Are My Thoughts. was first published by The Motley Fool
