This foundry strategy, as it is called in the industry, has led TSM to gain an impressive lead over competitors like Intel due to its massive scale and resources. Unlike an integrated manufacturer like Intel, TSM does not actually sell semiconductors to end customers but manufactures them based on designs outlined for them by companies like Apple and Nvidia. The company is the largest manufacturer of semiconductors worldwide, focusing on the cutting-edge layer of chips for companies like Apple, Nvidia, and many others.
Taiwan Semiconductor Manufacturing ( TSM -0.38% ), or just TSM, is one of the largest companies in the world, with a market cap of $600 billion. Taiwan Semiconductor Manufacturing: 1.24% yield Since the company takes a percentage of every transaction on its network, if overall payments volume rises due to inflation, Visa's revenue will grow along with it.
Lastly, Visa stock is a perfect inflation hedge. V Dividend Per Share (TTM) data by YCharts Visa's dividend yield right now is quite small, at 0.66%, but with a dividend per share that has grown substantially over the last decade, investors will likely be quite happy with Visa's dividend payouts over the next 10 years. This has mainly been through share repurchases, with $4 billion bought in the first quarter of fiscal year 2022 alone, but management has also consistently raised its dividend per share since instituting one a little over 10 years ago. With these outsized profits, Visa has started to return a healthy amount of money back to investors through dividends and share repurchases. In the first quarter of 2022, the company had a best-in-class 66% operating margin, which shows how incredible Visa's business is.
Since Visa's network is extremely asset-light, most of its revenue falls directly to the bottom line. Growth in revenue was mainly driven by a 20% increase in payment volume around the world. In the first quarter of fiscal year 2022, which ended in December, Visa did $7.1 billion in revenue, up 24% year over year. There are no signs of this "war on cash" slowing down anytime soon. With the steady decline of physical cash payments and the rise of digital payments globally, Visa has ridden a nice secular tailwind over the last few decades. Visa makes money by partnering with banks and credit card and financial technology (fintech) companies, taking a small fee on every transaction processed on its network. Most of you reading this will know Visa ( V -0.85% ), one of the two dominant digital payment rails along with Mastercard. TXN Dividend Per Share (TTM) data by YCharts 2.
Tsm 4 premium free#
If revenue and free cash flow continue to compound as they have in the past, the stock's annual dividend payouts will likely grow along with it. Over the past decade, Texas Instruments' dividend payouts have grown tremendously, now at $4.21 a share over the past 12 months compared to under $1.00 back in 2010. This free cash flow is what funds Texas Instruments healthy 2.79% dividend yield. Over the past 12 months, it generated $6.3 billion in free cash flow, up 15% year over year. For example, in the fourth quarter of 2021, the company grew sales 19% year over year to $4.8 billion. Given the steadily rising demand for semiconductors around the globe, Texas Instruments has been able to grow its top and bottom lines at a healthy clip over the past decade.
0 kommentar(er)
