This Week's Top Growth & Income Stocks - Wednesday, October 4

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Texas Instruments (TXN - Free Report

Texas Instruments is a global semiconductor company and an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits. Their chips are used in everything from mobile phones to industrial equipment and many smart products.

The company reported excellent results for the second quarter, exceeding Zacks Consensus Estimates for both earnings and revenues.

They have also been returning a lot of cash to shareholders in the form of dividends and buybacks. They have increased dividends each of the past 14 years, and reduced outstanding shares by 42% since the end of 2004.

Recently, the chipmaker announced a 24% in the quarterly dividend from $0.50 per share to $0.62, or $2.48 annualized. At the current share price, the dividend yield would be about 2.8%. They will also increase their buybacks by $6 billion.

TXN is a Zacks Rank #2 (Buy) stock with the industry rank also in the top 4% of all Zacks industries.

DSW (DSW - Free Report)

DSW is a footwear and accessories retailer. Most retailer stocks have been beaten down badly this year thanks to the rising trend for online shopping, particularly on Amazon. Some of them look attractive on valuation now.

The company posted better-than-expected second-quarter 2017 results, beating on both the top and bottom lines and leading to almost 20% surge in share price after the report.

Lately, the company has been cutting down on promotions and discounts, and focusing more on full-prices items, which improved margins. They have also been focusing on the digital channel, where demand increased by 27%.

It’s a Zacks Rank #1 (Strong Buy) stock, with Style Score of “B” for Value, Growth as well as VGM and industry rank in the top 31%. Further, the stock has a very juicy dividend yield of 3.75%.

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