Friday, October 12, 2012

Intel - INTC

Analysts have been picking on Intel with their earnings expectations, putting downward pressure on the share price.  I have been monitoring Intel for some time now, looking to add technology into the dividend portfolio.  With earnings being released this Tuesday, now may be a good time to initiate a purchase.  Here are a few quick stats:

Price = 21.48
Dividend = $.90
Payout = 38%
RRR = 10.99
13% debt

Although INTC has steadily dropped over time, here are a few reasons why it may be a good idea to get in soon:

*Shares have a 52-week high in May at $29.27, and have fallen to their new 52-week low of $21.48. This is nearly a 31% drop in price!
*Current dividend yield is 4.19%, this acts as a support for the stock price.
*There have been 9 consecutive years of raising dividends, this dividend challenger should become a dividend contender soon!
*Of the last 7 quarters, INTC managed to beat earnings estimates, surprising analysts 5 of those quarters... do you think INTC might provide another surprise?
*What will the share price be when INTC gets involved in the ever-growing tablet market?

I will conclude this post with a quick glimpse of INTC from fastgraphs:
Intel appears to be quite undervalued at current price levels.

What do you think of INTC as a current purchase?  If not INTC, what technology stock would serve as a good alternative?

Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.