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Investors love chip stocks, with many quickly realizing the vital role semiconductors play in everyday life.
Of course, many investors also target dividend-paying stocks, aiming to achieve a passive income stream and limit the impact of drawdowns in other positions.
And several stocks, including Texas Instruments, Broadcom and Taiwan Semiconductor Manufacturing, provide investors with exposure to chips and the ability to reap an income stream.
For those interested in chips and reaping an income stream, let’s take a closer look at each one.
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits.
TXN’s annual dividend yield stands tall at 2.9%, paired with a sustainable payout ratio sitting at 53% of its earnings. Impressively, 2022 marked the company’s 19th consecutive year of increased payouts.
Texas Instruments posted better-than-expected results in its last quarter, exceeding bottom line expectations by nearly 9%. Quarterly revenue totaled $4.7 billion, 2% above expectations and pulling back marginally year-over-year.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices.
Broadcom’s dividend metrics are hard to ignore; its annual dividend presently yields 3.1%, more than triple that of the Zacks Computer and Technology sector.
And to top it off, the company’s 21% five-year annualized dividend growth rate reflects a strong commitment to increasingly rewarding shareholders.
In addition, AVGO’s 75.1% TTM return on equity is undoubtedly impressive, reflecting a higher level of efficiency in generating profit from existing assets compared to peers.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry. The stock gained widespread attention following a purchase from the legendary Warren Buffett a few months back.
TSM’s annual dividend yield stands at 1.6%, again well above the Zacks sector average. Similar to AVGO, Taiwan Semiconductor has shown a commitment to its shareholders, upping its payout 11 times over the last five years.
Shares got a nice boost following the company’s latest quarterly release..
TSM exceeded the Zacks Consensus EPS Estimate by roughly 1% in its latest quarter, reporting earnings of $1.82 per share. Quarterly revenue totaled $19.9 billion, reflecting a sizable 26% year-over-year increase.
Bottom Line
Chip stocks are undoubtedly exciting investments, rewarding shareholders handsomely with gains over the last several years.
And for those interested in reaping a steady income stream paired with exposure to the semiconductor industry, all three stocks above – Texas Instruments, Broadcom and Taiwan Semiconductor Manufacturing -- would provide that.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Texas Instruments, Broadcom and Taiwan Semiconductor Manufacturing
For Immediate Release
Chicago, IL – March 6, 2023 – Today, Zacks Investment Ideas feature highlights Texas Instruments (TXN - Free Report) , Broadcom (AVGO - Free Report) and Taiwan Semiconductor Manufacturing (TSM - Free Report) .
3 Chip Stocks Suited Nicely for Income Investors
Investors love chip stocks, with many quickly realizing the vital role semiconductors play in everyday life.
Of course, many investors also target dividend-paying stocks, aiming to achieve a passive income stream and limit the impact of drawdowns in other positions.
And several stocks, including Texas Instruments, Broadcom and Taiwan Semiconductor Manufacturing, provide investors with exposure to chips and the ability to reap an income stream.
For those interested in chips and reaping an income stream, let’s take a closer look at each one.
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits.
TXN’s annual dividend yield stands tall at 2.9%, paired with a sustainable payout ratio sitting at 53% of its earnings. Impressively, 2022 marked the company’s 19th consecutive year of increased payouts.
Texas Instruments posted better-than-expected results in its last quarter, exceeding bottom line expectations by nearly 9%. Quarterly revenue totaled $4.7 billion, 2% above expectations and pulling back marginally year-over-year.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices.
Broadcom’s dividend metrics are hard to ignore; its annual dividend presently yields 3.1%, more than triple that of the Zacks Computer and Technology sector.
And to top it off, the company’s 21% five-year annualized dividend growth rate reflects a strong commitment to increasingly rewarding shareholders.
In addition, AVGO’s 75.1% TTM return on equity is undoubtedly impressive, reflecting a higher level of efficiency in generating profit from existing assets compared to peers.
Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is the world’s largest circuit foundry. The stock gained widespread attention following a purchase from the legendary Warren Buffett a few months back.
TSM’s annual dividend yield stands at 1.6%, again well above the Zacks sector average. Similar to AVGO, Taiwan Semiconductor has shown a commitment to its shareholders, upping its payout 11 times over the last five years.
Shares got a nice boost following the company’s latest quarterly release..
TSM exceeded the Zacks Consensus EPS Estimate by roughly 1% in its latest quarter, reporting earnings of $1.82 per share. Quarterly revenue totaled $19.9 billion, reflecting a sizable 26% year-over-year increase.
Bottom Line
Chip stocks are undoubtedly exciting investments, rewarding shareholders handsomely with gains over the last several years.
And for those interested in reaping a steady income stream paired with exposure to the semiconductor industry, all three stocks above – Texas Instruments, Broadcom and Taiwan Semiconductor Manufacturing -- would provide that.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.