Texas Instruments' Profit Tanked -- Time to Sell This Top Dividend Stock?
As semiconductor companies have been predicting for some time now, the market is currently in the middle of a nasty slump. Even longtime chipmaker and top dividend stock Texas Instruments (NASDAQ: TXN) is getting hit. Revenue and earnings per share fell a respective 11% and 21% year over year in Q1 2023, and things are expected to get worse for at least one more quarter before starting to rebound in the second half of 2023.
Now nearly a century old, the oft-vaunted TI has been through its fair share of semiconductor market pain. But we're entering uncharted waters for this old manufacturing giant, a period where elevated spending could put a serious damper on Texas Instruments' favored financial metric: free cash flow per share. Is it time to sell this dividend stock?
Although TI is a cyclical business, as is all manufacturing, dividend growth investors love the company because of its robust cash-generation superpower. Indeed, this industrialist has been churning out cash and doling all of it out via a dividend and stock buybacks for many years. It has been a potent combo that has helped Texas Instruments stock beat the market.
Source Fool.com
