Texas Instruments

Philosophy and record: management focuses on long-term free cash flow per share growth, with three pillars of a great business model, disciplined capital allocation, and efficiency. Over the last 12 months TI returned 6.6 billion dollars to owners and invested 4.8 billion dollars in capex.

The dividend has been raised for 21-plus consecutive years, and 2024 saw a 5% increase to 1.36 dollars per quarter, with 2025 dividends continuing and share repurchases resuming as capacity investments progressed. SBC dilution is managed with an explicit target of under 2% net annual dilution.

Constructive critique: the current capex cycle is unusually heavy; activist engagement in 2024 pressed for more dynamic capacity management and a path to higher FCF per share by 2026. We view the spend as moat-accretive and U.S.-sited, but we monitor utilization discipline and the cadence of buybacks while FCF is temporarily suppressed.