Tuesday, April 19, 2011

Intel's Solid Yield

[Intel has fallen back into the ranks of a high yielder again. The stock is back below $20 a share and is paying investors a 3.7% return via the dividend alone. Intel is one of those stocks that has struggled to break out over the past decade. Investors can at least benefit from the high yield while waiting for the company's strong revenue growth and free cash flows to bee reflected in the stock price.]
[Intel Corporation is one of the larges designers, manufacturers, and sellers of computer chips in the world. The company specializes in creating integrated circuits for personal and business computers. Intel is the dominant player in the microprocessing space with the company's main competition being AMD. Intel's microprocessor products are used in notebooks, netbooks, desktops, servers, workstations, and tablets. Intel has a long history of treating its shareholders right.
The company has done everything possible to maximize value and the returns of shareholders. Intel just announced a $10 billion dollar buyback plan and increased its dividend again. Intel increased its annual dividend to 72 cents per share. The stock trades at just 9 times earnings despite the company's past 3 year growth rate of 19%. Intel trades at 2 times book value and 2.5 times the company's sales. All of these metrics show that the company is a real value play.
Intel is a very attractive dividend play with its huge yield and the company's history for increasing dividends. The large amount of free cash flow that the company generates and the fantastic balance sheet make the company a must own for any fixed income investor looking for safe income in a turbulent market. ] If you enjoyed this article, please consider subscribing to my feed at [RSS].

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