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.


  1. Good post I really like Intel and have been adding... the other names I like are MSFT, and Seagate (STX).

  2. Hey DF, yea pullingmyselfup mentioned STX in a few of his posts. I have been wondering for a while what direction the stock will go on the 16th, regardless of direction it appears to be a good buy at the moment. We'll see how it plays out.

  3. The only tech stocks I watch are INTC, MXIM and TSM. I own INTC in my DG portfolio and TSM in my income portfolio but am selling calls against TSM until it's called away due to a lower yield. MXIM has raised dividends for 11 straights years but has a higher payout ratio so I am sticking with INTC for now.

  4. I agree AB~ with such a low payout ratio INTC will have no problem maintaining its current dividend, even with a slight drop in earnings!

    I think the release of windows 8 will give INTC a boost for next quarter, which wouldn't hurt.

  5. Does INTC make tablet and smartphone chips? I'd be concerned about their future.

  6. Currently, INTC plays a small role in the mobile phone market and is NOT involved in tablets, which is why so many others are doubting the future of the company. I have read that INTC has been developing server technologies and cloud computing....

    Tablet technology would be more important in my opinion.