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Better Dividend Stock: Texas Instruments vs. Intel


Texas Instruments (NASDAQ: TXN) and Intel (NASDAQ: INTC) are both blue-chip semiconductor stocks that are often owned for stability and income instead of aggressive growth. But which of these chipmakers is actually a better long-term investment for dividend investors? Let's compare their core businesses, growth rates, and valuations to decide.

Texas Instruments and Intel are both integrated device manufacturers (IDMs) that manufacture their chips at their own foundries.

This makes them different from "fabless" chipmakers that outsource their production to third-party contract chipmakers. However, both chipmakers still outsource a small portion of their non-core chips -- like TI's embedded chips and Intel's discrete GPUs -- to third-party foundries.

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Source Fool.com

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