In general, the semiconductor space has had a rough 2026. The year started strong with AI hype pushing chip stocks higher, but things began to slip in early June after Broadcom (AVGO) gave a weaker-than-expected outlook for chip sales, triggering a sector-wide rout. That sell-off dragged the S&P 500 Index ($SPX) and Nasdaq 100 ($IUXX) to multi-week lows as investors started questioning the true sustainability of the AI rally. The pressure didn’t ease either. By June 23, another sharp drop in chip stocks pulled the Nasdaq 100 down as much as 3.29% in a single session, with concerns building around valuations and AI spending.
While all that was happening, dividend stocks quietly went the other way. Names that are usually overlooked in fast-moving markets started putting up strong gains, even as the broader indexes struggled. Texas Instruments (TXN) stands out here. The stock is up 79.6% year-to-date (YTD) as of late June 2026, far from its $174.91 low back on January 2, and now ranks among the best-performing dividend stocks this year. At the same time, it’s still paying investors, with a forward annual dividend of $5.68 and a yield of 1.87%.
