The market thinks it's a bad sign when Texas Instruments
You'd think this pessimism would be priced into the stock by now, after belt-tightening signals from fellow tech giants Cisco Systems
Does that mean you should back up the truck and load up on TI shares today? The company pays a steady, fully cash-backed, and rising dividend, so buying into weakness could be a good move for the income-minded investor, even if you don't expect much in terms of direct stock returns.
Still, I'm not so sure a big buy-in is a good idea. Over the last five years, TI's stock has fallen by 28%, while the S&P 500 benchmark contained its losses to a more moderate 11%. If you adjust for reinvested dividends along the way, TI still lost 23% of its value over that time frame, while S&P nearly broke even with a 2.2% negative return. In other words, you could find much better dividend plays elsewhere, even when you consider TI's rock-bottom pricing today.
For the dividend-minded investor, a shift away from Texas Instruments, and toward extremely high payers like Annaly Capital
In other words, you can safely leave TI alone for now, despite a seemingly tempting buy-in opportunity. This price drop may come from the overreaction of a nervous market, but it's nowhere deep enough to make TI a must-buy stock today.