Congress Has Been Loading Up on These 2 Stocks in 2026!

The S&P 500 is now up by about 12% year to date. If we look at the heat map of the S&P 500, we can see there's been a few huge winners. And one thing is for sure in this market, members of Congress continue to buy and sell stocks. In fact, we even have ETFs dedicated now to tracking Republicans and Democratic members of Congress. And of course, as you might suspect, the Congressional Democrats trading ETF has actually outperformed the market year to date by a slight margin. And while there is currently legislation that's trying to be put through to shut this down, the reality is that for now as investors, we should be researching what members of Congress are buying because they have access to data that we don't. So in this video, we're going to be looking at two stocks that members of Congress have recently been adding to their portfolio. And to analyze these stocks, we're going to be using forecaster.biz, which you can check out at the link in the description and get a discount, too. My favorite feature is how easily you can overlay a company's fundamentals with their share price because over the long term, growing fundamentals is what pushes the share price higher. So, with that being said, let's go ahead and dive in. And the first stock is a stock I've held in my portfolio for a few years now, and it's been a massive winner, and that's Broadcom. If we jump over to the political tab, one of the things we can see is there was some massive buying of Broadcom in Q2 of 2024 and Q2 of 2025. And while that buying has certainly slowed down, we can see over the last couple of quarters, there's been significantly more buying than selling. Now, as you already know, if we look at this stock over the last 5 years, it's up by about 650%. 650%. And what's interesting about this is during the entirety of that runup, it's been growing its dividends at a high rate as well. It grows dividends at a double-digit rate. So, this is a true dividend growth stock. Now, ultimately, growing free cash flow is the driver of intrinsic value, and free cash flow has exploded particularly in the last couple of years. But here's where a lot of people have a concern. It's if we overlay the PE multiple for this stock. We can see the price to earnings multiple has climbed substantially and has been sitting in the 60s to 70 range over the last couple of years. That's quite concerning for a lot of investors, especially with the Trunk 12-month PE multiple right at 60. But I'm here to make the case today that Broadcom at these prices is not ridiculous. And let me show you what I mean. If we jump over the financial statements tab here, let's go ahead and jump over to our statement of cash flows. The first thing I want to look at is net cash provided by operating activities. Now, essentially what we're doing is we're looking at operating cash flows. These are the cash flows the core business has been generating. And I want you to take a close look at the growth rates we've seen over the last couple of years. From 2024 to 2025, we saw 38% growth in operating cash flows. It then jumped to 66%. So, we're talking about explosive growth. But this still doesn't paint the whole picture. How have they been able to grow at such a high rate? Well, it's certainly due to a multitude of factors, but historically speaking, Broadcom has been heavily driven by growth through acquisitions. Now, is this a good thing or bad thing? Well, obviously the reality is that it depends on a multitude of factors, but I want you to understand just how large some of these acquisitions actually were. For example, VMware, that acquisition was just back in 2023, and this was their largest acquisition valued at approximately 69 billion. Keep that number in mind, 69 billion. Again, for reference, operating cash flows in 2025 was just 27.5 billion. So, we're talking about a significant acquisition, eating up all of their operating cash flows for years to come. But this was a very important acquisition. It transformed the company by adding one of the world's largest enterprise virtualization and private cloud platforms, which pushes us to have a broader conversation around the overall business model for this company. What are the business segments? Well, take a look at fiscal year 2025 revenue. Really, there's two primary segments for Broadcom. We have infrastructure software and semiconductor solutions. Now, yes, we can point out these two different business segments, but what really makes this company so special is how well they complement each other. Let me show you what I mean. On the semiconductor side, Broadcom designs highly specialized chips and connectivity products used in AI data center. So, yes, it's an AI stock and this is used in industrial equipment. The company does not manufacture most of these chips itself. But what they do is they focus on the most valuable part of the process which is designing the chips and owning the intellectual property while outsourcing manufacturing to companies such as Taiwan Semiconductor. So it's a much more capital-like business model which allows them to produce very high margins and enormous free cash flow without spending tens of billions of dollars like a lot of these other semiconductor companies. So now Broadcom is working with companies like Google, Meta, Open AAI, Anthropic. These are companies looking to reduce their dependence on Nvidia, which is a huge advantage for Broadcom. They're positioned to help them develop more efficient and less expensive custom chips. So, that's the short version of the semiconductor solution segment. It's obvious to see what the growth runway looks like there, but think about infrastructure software and how well this actually complements it. Through a lot of their acquisitions, Broadcom owns software used to operate mainframes, secure corporate networks, and manage private cloud infrastructure. And so these are products that are embedded deeply inside the operations of large corporations. So a lot of the times there's high switching costs and they also generate substantial gross margins sometimes in the range of even 90%. And so all of a sudden this becomes a recurring revenue business segment. So the two business segments somewhat balance each other. Semiconductors is exploding with growth. Meanwhile, infrastructure is very predictable, reliable cash flows that also has some pricing power. And so while the acquisitions they made in the past absolutely did eat up a substantial amount of their cash flows, you can see the growth of operating cash flows is actually picking up. Like I said, 38% all the way up to 66%. And just take a look at what that's done for free cash flow as well. The free cash flow growth rates are very high. And here's what you'll also notice. Free cash flow is only slightly lower than the net cash provided from operating cash flows. Again, it's because their free cash flow margins are so strong. Now, perhaps most importantly is revenue is projected to continue to remain extremely strong. Revenue growth was a bit slower over the last couple of years, but it's expected to pick back up. Now, if we look at a few of these ratios, take a look at the gross margins. Like I said, they're quite strong. And again, notice while the company's growing at just substantial rates, high double digits, their gross margins have also been expanding. So, when revenues are growing at a double- digit rates, and you have gross margin in 2017 going from 48.25 25 all the way up to 67.7% in 2025. Obviously, that means earnings growth is going to be explosive. Now, here's what a lot of people would point out. This is all great news, but this is backward looking metric. And when we look at forward valuations, it's a bit more concerning. You can see the Ford PE multiple was sitting at about 60 as of earlier this month. But with the stock's recent selloff, which wasn't a substantial sell-off, but it was a sell-off, the Ford PE multiple is down to about 33.59. But the reality is again, I don't think that's a ridiculous price for Broadcom. And for example, just take a look at the analysis here from Forecaster. They give them a DCF price per share of almost $500. Now, the economic value added in EV sales definitely pulls the valuation down, but just take a look at what Ford returns actually look like if Broadcom gets anywhere close to achieving the earnings growth that analysts are stating that they will achieve. So, for example, the projected EPS Kagger through the year 2030 is 31.81%. 81%. 31.8 just mind-blowing to think about. Look at how much the PE multiple can drop and the company still posts strong returns. Again, strong 12 month PE multiple right at 60. If this pulled all the way back to 30, what you can still see is compounded returns from 2029 to 2030 would just be ridiculously strong. Even if it fell to 25, we're still talking about way outperforming the market. And even at a 20p multiple, a 2030 compounded annual growth rate of 13.5. again way outperforms historic market averages. Now again, this is assuming the average EPS growth estimate. It's not the best case scenario. It's certainly not the worst case scenario. The biggest risk would be the supply chain weakening, the AI supply chain. And so if that were to happen, obviously we'd see a huge reversion in the valuation multiple for the stock. But over the long term, I do really like the business model. I love the recurring cash flows from the infrastructure software business segment. And of course, I love the growth from the semiconductor solution segment. And all at the same time, you're going to continue to get a substantially growing dividend payment. And in fact, this is a stock I've held in my personal portfolio for a while now. On my original cost basis, I'm up around 500 600%. And of course, my dividend yield on cost for this position continues to climb higher despite the fact the stock is yielding below 1%. My yield on cost on my original shares is well above four, maybe even 5%. Now we have Texas Instruments, who in a lot of ways is pretty much the complete opposite of Broadcom. Not necessarily from a business perspective, but from a performance perspective. And let me show you what I mean. Over the last 5 years or so, the stock is only up about 38%. And you can see from late 2021, really till early 2026, the price performance was extremely choppy. It was very volatile and ultimately went nowhere. And then all of a sudden, the stock price surged from around $150, $160 a share and peaked at $332 a share in the summer of 2026. Now, in the last few months alone, we've seen a little bit of a pullback from those peaks, but the stock is still up 46.8% this year. So, what's been going on? Well, if you've been watching the channel for a while now, you might have a little bit of an idea because I've been talking about this stock for a few years now, and it's a stock that's done pretty well for me personally. I'm up about 78% on this position. So, what's the story behind Texas Instrument stock and is it still an opportunity? Well, if you jump over to their website, I actually love what they state. They're very focused on capital management and they even have a whole presentation dedicated strictly to this. Now, I talk about capital allocation all the time because it's probably one of the most important things that management can do, if not the most important. And really, they state what I preach all the time. Running the company with the mindset of a long-term owner. They believe the growth of free cash flow per share is the primary driver of long-term value. And after a credit of investments in the business to grow free cash flow for the long term, the remaining cash will be returned over time via dividends and share repurchases. And historically speaking, that's exactly what they've done. And they've grown dividends at a high rate as well. You can see just back in 2016, dividends are about 38 cents per share. by 2026, $142. So, we're talking about rapid dividend growth. Now, right now, the yield is sitting at about 2.18%. And keep in mind, that's after we saw a huge run up in the share price. So, it wasn't that long ago this stock was yielding well above 3%. But what's the story behind the share price? Again, very choppy over the last 5 years and then surged forward in 2026. Well, this is going to give us a little bit of a breakdown. If we start to scroll down, here's where they're at with their capital allocation right now. Like they stated, they're reinvesting heavily back into the business. This has been planned for a while, then paying out dividends and buying back shares. Now, if we scroll down, we're going to get a little more of a picture of what this actually looks like. This image has been the ultimate goal for Texas Instruments. But to really understand it, you need to back up for a moment. If we jump back over to forecaster, let's talk about capital expenditures for a moment for Texas Instruments. If we jump over to the fundamentals tab and go to financial statements, go to the statement of cash flows and scroll down. If you scroll down far enough, you're going to find the capex spending for the stock. Now, what you'll notice is historically speaking, this was a relatively capitalized business. Not a lot of capital expenditures, which made free cash flow generation relatively easy. But what we can see is capex spending ramped up heavily starting in around 2021. They went through a period of heavy capex spending. But that capex spending has started to reduce. Now, why is capex important? Why are we looking at this specific metric? Well, remember the free cash flow formula. It's simple. It's operating cash flows minus capital expenditures equals free cash flow. And like we just saw, free cash flow is the ultimate driver of intrinsic value. More specifically, free cash flow on a per share basis. So, we don't like to see high levels of capex spending unless it creates more growth opportunities. And that's exactly what Texas Instruments was aiming to do. What we can see here is the sales price of an example part of a 200 millimeter wafer versus a 300 millimeter wafer. And what you'll notice is the gross margins on these are radically different. In fact, the chip cost is 40% less on 300 mm. Now again, the ultimate goal of this is to unlock higher revenue growth streams down the road. And what you'll notice is they're projecting out what their estimated capex spending will look like in 2026. Again, you can see that downward trend is continuing. So, not only will free cash flow growth start to speed up due to organic revenue growth, but also the margins are going to start rapidly improving on the back end. So, this image right here is the most important image to truly understand Texas Instruments. Again, free cash per share, the ultimate driver of their intrinsic value. And what you can see charted out here is it was growing at a high rate. And historically speaking, the stock did extraordinarily well as a result. I mean, take a look at the long-term returns for Texas Instruments over the last 20 years. They're up over 716%. But as they enter that time period of elevated capex spending, you can see free cash flow per share cratered. So we see all these other stocks on the market right now ramping up capex spending. A lot of the hyperscaler stocks. Well, Texas Instruments was early to that game. And it cost free cash flow per share to drop substantially. But here's their target range now. All of a sudden, they're on track to deliver more than $8 of free cash flare at their current 2026 revenue consensus. Now, for reference, they were sitting just a little bit above five or $6 per share before the period of elevated capex spending. So, that's roughly a 33% increase in free cash flow per share. And so, if that trend continues, that compounding effect for Texas Instruments is back. And remember, dividends and share buybacks are the result of growing free cash flow per share. So when we see this history of growing dividends 22 consecutive years in fact while the payout ratios looked ugly over the last few years with free cash flow per share lower ultimately this is still a safe dividend. In fact we should continue to expect to see nice levels of dividend growth moving forward. And not just dividend growth but we should continue to see some level of share buybacks. Now it's been a little bit less over the last few years but we're talking about a company that since 2004 reduced its shares outstanding by 47%. Think about what that means for a moment. by basically reducing their shares outstanding, cutting it in half. It causes all the other per share metrics to essentially double. When done correctly, share buybacks are incredible for dividend growth investors. Now, with that being said, we hear debates of share buybacks versus dividends being paid out all the time, and they both have their pros and cons. I'm I'm a big fan of both of them when they're done properly. But one thing we do need to point out, if you're someone looking to live off dividends, I have good news because dividends are much more sustainable in their payouts. management is much more committed to them versus share buybacks which can fluctuate by a wide amount year-over-year. So when we look at Texas Instruments and look at free cash flow over the last 5 years, yes, it's cratered, but now we understand the story of why and we can see free cash flow is quickly recovering and free cash per share is expected to be quite strong in 2026 even relative to its preheavy capex spending cycle. Of course, as a result, we should continue to expect dividends to increase. But the one caveat to all this is the valuation because again it's the opposite of Broadcom. We can see the valuation was quite low during this heavy capex spending period. The market didn't seem to like it. But now that the market can see the light that these capex spending is starting to pay off. The stock has jumped substantially and the price to earnings multiple is now sitting at 39.5 on a trailing 12-month basis. But again it's because what the market knows. What was that guidance that management gave us? management pointed to the fact that free cash flow per share could easily be 33% higher than its pre-elevated capex spending era. So the market is pricing this in accordingly. So when we look at fair value based on forecasters assumptions, we can see it has it at about $236 a share with the DCF model pointing to a fair value of 271.8. If we simply look at a sensitivity analysis again, assume that they achieve their projected EPS cagger of about 9.3 and even if the PE multiple pulls all the way back to 30, you can still see 2030 2031 compounded returns around 7% which keep in mind when you include the nice starting yield on the dividend of about 2% that pushes it above 9% total. So, it's still trading at a reasonable valuation, but obviously this is a stock I've been talking about really for the last 3 or 4 years now and added some shares at what I think is a pretty good valuation. And my portfolio, to be fair, has certainly reaped the benefit. So, yes, there's absolutely opportunities out there like this. But what's ironic is nobody was talking about Texas Instruments in 2024, 2025. It wasn't until the stock started to take off that it started getting media attention again. And so while the valuation isn't too unreasonable right now, the stock has realized a lot of its upside. Now, with that being said, it's interesting because we saw a huge sell-off of the stock in Q1 of 2026. But of course, that is when the stock started to see a huge run up in the share price. But over the last couple of quarters, we've started to see members of Congress start to buy again. So there you go. That's two stocks that members of Congress have been recently adding to their portfolio. Go ahead and let me know what you think of these companies in the comments down below. And again, be sure to check out forecaster.biz biz at the link in the description to get a discount. It's a really cool tool that I personally like to use to overlay the fundamentals with a company share price. So, with all that being said, thank you guys so much for watching and please don't forget to like and subscribe to the