Intel (INTC) is an unloved
company right now. Some say it has lost
its way. Maybe it is like the buggy whip
companies of years ago. The trend is
toward smart phones and Intel has been slow to get a piece of that market. However, I believe that as an income
investor, Intel may be a buying opportunity.
BUYING OPPORTUNITY
The stock price of so many
companies that pay a good dividend is an
all time high. It makes me nervous to
buy a company with a stock price at the all time high. INTC is in a trading range of between $19 and
$21.50 per share. It seems they are
stuck in that range but I am not looking at the stock price as much as I am
looking for yield. Intel, I believe is
one those companies that pays a good yield of 4.22% and is a buying opportunity. Let us look at Intel’s dividend fundamentals.
DIVIDEND MACHINE
|
2/4/2013
|
Intel
|
INTC
|
Price when profiled
|
$21.35
|
Last 4 Qtrs Earnings
|
$2.29
|
Last 4 Qtrs Dividends
|
$0.87
|
Current Qtr Dividend
|
$0.225
|
Annualized Div Yield
|
4.22%
|
No. Years Div Increase
|
Since 2004
|
Debt/Equity ratio
|
0.26
|
DIVIDEND FUNDAMENTALS
Before a company can pay a
dividend, it should have earnings and those earnings should consistently be
greater than the dividend paid out.
Furthermore, I like a dividend in the four percent range or higher. Companies that have earnings greater than
dividends, dividends that increase every year since at least 2007 and a solid
balance sheet are dividend machines.
INTC was a dividend machine in
2011 (2011 Post), in 2012 (2012 Post) and I am naming it one of my dividend machines for 2013. Intel earned $2.29 per share during the last
four quarters. The dividend during that
same time was $.87. Intel recently
increased the dividend and the annualized income is $.90. Intel has increased the dividend every year
since 2004 and that includes the years of 2007 -2009 when we experienced a big
stock market crash. Their balance sheet
is solid as measured by D/E ratio which is .26.
Consider Intel, INTC, for the
income producing portion of your portfolio.
TheMoneyMadam
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