I don't think Dallas-based chip maker Texas Instruments
Texas Instruments (TI) has been a big winner for shareholders over the last two decades, delivering investors roughly 13% compound annual growth. As the company has turned out close to $2 billion in free cash flow over the trailing-12-month period, management has sought to return that value to shareholders. TI recently upped its buyback plan by an additional $5 billion, in addition to a 25% increase in its quarterly dividend. While tech stalwarts Cisco
The increase comes atop an already aggressive buyback schedule, which according to management will bring the total authorization for repurchases to $20 billion in the past three years. In its recent conference call, management expressed cautious confidence in a brighter future for the semiconductor market, just as competitors Analog Devices
The move is a bullish sign, even in the face of some risks for the chip designer. Earlier this year, Nokia
With decades of experience in semiconductor markets, I tend to side with Texas Instruments' vision of the future. It's been prescient in its view of industry trends, so the big vote of confidence in future profitability speaks well in the mind of this Fool.
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Fool contributor Dave Mock has been deep in the heart of Texas. He owns shares of Qualcomm and is the author of The Qualcomm Equation. Microsoft is an Inside Value selection. The Fool's disclosure policy wears oversized cowboy hats often, but reserves the chaps for truly special occasions.