Texas InstrumentsTXN +0.95%81 5-Year Yield-on-Cost % is 2.64 as of Jul. 12, 2026, which is 28% below its 10-year median of 3.67. GuruFocus rates TXN with a GF Score™ of 81/100 and a GF Value™ of $214.21 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 533 Semiconductors companies, Texas Instruments ranks better than 73.17% on this metric.
Texas Instruments's yield on cost for the quarter that ended in Mar. 2026 was 2.64.
The historical rank and industry rank for Texas Instruments's 5-Year Yield-on-Cost % or its related term are showing as below:
TXN'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.53 Med: 3.67 Max: 5.29
Current: 2.64
During the past 13 years, Texas Instruments's highest Yield on Cost was 5.29. The lowest was 2.53. And the median was 3.67.
TXN's 5-Year Yield-on-Cost % is ranked better than 73.17% of 533
companies
in the Semiconductors industry
Industry Median: 1
vs TXN: 2.64
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Texas Instruments 5-Year Yield-on-Cost % Related Terms
TXN vs MRVL, QCOM, ADI: 5-Year Yield-on-Cost % Comparison
For the Semiconductors subindustry, Texas Instruments's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Texas Instruments 5-Year Yield-on-Cost % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Texas Instruments's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Texas Instruments's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Texas Instruments (TXN) has a 5-Year Yield-on-Cost % of 2.64 as of Jul. 12, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Texas Instruments and its competitors. This is 28% below median its historical median of 3.67. Over the past decade, Texas Instruments' 5-Year Yield-on-Cost % has ranged from 2.53 to 5.29. According to the industry distribution chart, Texas Instruments ranks #143 out of 533 companies in the Semiconductors industry, placing it in the top 26.8%.
Is Texas Instruments' 5-Year Yield-on-Cost % too high?
Texas Instruments' current 5-Year Yield-on-Cost % of 2.64 is 28% below median its 10-year median of 3.67. Over the past 10 years, this metric has ranged from a low of 2.53 to a high of 5.29. The Semiconductors industry median 5-Year Yield-on-Cost % is 1.00. Texas Instruments' value of 2.64 is 164% above this industry median. Based on the distribution chart, Texas Instruments ranks #143 out of 533 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Texas Instruments has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Texas Instruments' 5-Year Yield-on-Cost % compare to MRVL and QCOM?
According to the Semiconductors industry distribution chart, Texas Instruments ranks #143 out of 533 companies for 5-Year Yield-on-Cost %. This puts Texas Instruments in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.00. Texas Instruments' value of 2.64 is 164% above this benchmark. Historically, Texas Instruments' own 5-Year Yield-on-Cost % has ranged from 2.53 to 5.29 over the past decade. While the company's 10-year median is 3.67 vs. the industry median of 1.00, Texas Instruments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Semiconductors company?
The median 5-Year Yield-on-Cost % among Semiconductors companies is 1.00, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current 5-Year Yield-on-Cost % of 2.64 is 164% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Texas Instruments and its competitors. For the Semiconductors industry, the median 5-Year Yield-on-Cost % is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current 5-Year Yield-on-Cost % is 2.64, which is 28% below median its own 10-year median of 3.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Instruments stock overvalued right now?
Based on GuruFocus' analysis, Texas Instruments (TXN) is currently considered Significantly Overvalued. The stock's GF Value™ is $214.21, compared to a current price of $311.46 — trading 45.4% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.64, which is 28% below median its 10-year median of 3.67 and 164% above the Semiconductors industry median of 1.00. Texas Instruments' overall GF Score™ is 81/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Texas Instruments (TXN), the current 5-Year Yield-on-Cost % is 2.64 as of Jul. 12, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Instruments (TXN) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued.
The current stock price of $311.46 is trading 45.4% above its estimated GF Value™ of $214.21.
GuruFocus considers Texas Instruments to be Significantly Overvalued.
Key valuation signals for TXN:
5-Year Yield-on-Cost %: 2.64 (28% below median its 10-year median of 3.67)
GF Value™: $214.21 vs. price of $311.46 (45.4% above fair value)
Industry Position: 164% above the Semiconductors median (#143 of 533)
No single metric tells the full story. See the TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.
81GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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