Where does Intel (INTC) rank after its 8% announced dividend increase?

INTC

Intel’s (NYSE: INTC) dividend was increased by 8% with an overall yield above that of the S&P 500 Index at 3.48%. Intel is a leading manufacturer of integrated circuits. Markets served: primarily makers of personal computers; communications, industrial automation, military, and other electronic equipment.

Main products: microprocessors (notably the Pentium series), microcontrollers, and memory chips. Also sells computer modules and boards, and network products. Intel has paid dividends on a consecutive basis for 23 years. Intel currently ranks 20th in yield within the large cap technology category.

Intel has maintained a solid three-year growth rate of dividends of 5 percent. The quarterly dividend for the March payment will be $0.26 versus the prior year rate of $0.24 per share.  Intel Corp. does qualify as a new member of our Top 100 Dividend Stocks (see below).

top-100

The dividend will be paid at the new higher rate on March 1, 2016, to shareholders of record at close of business on February 7, 2016. Intel is currently priced at $29.92. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
2/7/2016 0.26
11/4/2015 0.24
8/5/2015 0.24
5/5/2015 0.24
2/4/2015 0.24
11/5/2014 0.225
8/5/2014 0.225
5/5/2014 0.225
2/5/2014 0.225
11/5/2013 0.225
8/5/2013 0.225
5/3/2013 0.225
2/5/2013 0.225
11/5/2012 0.225
8/3/2012 0.225
5/3/2012 0.21
2/3/2012 0.21
11/3/2011 0.21
8/3/2011 0.21
5/4/2011 0.181
2/3/2011 0.181
11/3/2010 0.158
8/4/2010 0.158
5/5/2010 0.158
2/3/2010 0.158

Analysis of Intel Corp. is based upon our five key criteria, which include; 

Category Value Score
Dividend Yield 3.48% 51
Dividend Growth (3-6 year avg) 6.98% 165
Forward P/E 12.35  39
S&P Financial Rating A+  80
Beta 1.05 150
Total Score    485

Additional Information on P/S ratio and historical yield;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate SPS 2016 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr lowest Yield % 5 yr max Yield %
3.48% 5% 8.95% 11.90 3.08 1.76 6.33 2.39% 4.49%

Final Analysis;   

Positives;

  • Intel’s dividend yield is above that of the S&P 500 Index.
  • Intel maintains a 3 year dividend growth rate of 5%.
  • Intel maintains a credit rating of A+. This is investment grade.
  • Intel’s forward P/E ratio is just over 12, below that of the market.
  • Intel is trading at a lower than average price/sales (P/S) basis.
  • Intel has paid out a dividend consecutively for the past 23 years.
  • Intel’s current dividend yield (3.48%) is just above it’s five-year average historical dividend yield of 3.44%.

Negatives;

  • Intel maintains a beta of 1.05, higher than the average company.

Based the firm’s solid dividend increases, low forward P/E, high credit rating, and a near 3.5% yield, Intel is a member of our  Top 100 Dividend Stocks list at #2. 


Intel Corp. Dividend Yield Chart (Click to enlarge)

INTC2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

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