Monday, February 4, 2013

2013 Dividend Machine, INTEL, symbol INTC


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