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+--- Thread: Intel's Streak Officially Dead (/showthread.php?tid=669)
Intel's Streak Officially Dead - TomK - 09-12-2014
So INTC declared the Q4 dividend today -- 22.5 cents. Exactly the same since the middle of 2012. While folks have been upset that they have not raised the dividend for two years now, it is only with this announcement that the 10-year streak of raises is officially dead (by the way I count, anyway, which looks at calendar years).
I had held out hope that they would announce a small raise to satiate beleaguered shareholders and to keep the streak alive. I don't think it would have been unreasonable given that the payout ratio is still below 50% and that 2014 has brought somewhat better earnings.
I know some of you have bailed out of INTC already -- how will the rest of you react to this latest announcement? I'm standing pat.
RE: Intel's Streak Officially Dead - Dividend Watcher - 09-12-2014
Standing pat. Cost basis less than $20 in both our accounts. Voting no for say on pay and against all board members on all proxies. Will sell sooner or later.
RE: Intel's Streak Officially Dead - Kerim - 09-13-2014
I'm a little sour about this myself. In my scoring system, INTC lost 10 points on this news alone, going from an already underwhelming 53 to a pathetic 43. I'm not inclined to rush out an sell the rest of what I've got, because it is held in a taxable account and has a nice gain that I'd have to pay taxes on, and like Tom, my personal yield is pretty good. However, I may start paring down and using the proceeds to up my allocation of more dependable dividend growth stocks that are looking good on the recent dip. My top prospects right now are MCD, XOM, T, and maybe some DE.
RE: Intel's Streak Officially Dead - ChadR - 09-13-2014
Standing pat for now. DRIP has been turned off and might start selling calls against it. With YOC over 4% hard to sell right now. Also don't really want to sell since it looks like to me that they are turning it around with the better earnings in 2014.
RE: Intel's Streak Officially Dead - The Dividend Guy - 09-13-2014
I sold INTC last year when I realized the company wasn't going anywhere in term of long term growth. They don't increase their dividend payouts because they can't sustain increasing their payment over time. INTC has to concentrate on switching their business model (leaving the PC as core business to tablets or cloud computing). This switch is not without risks.
There are too many great companies to keep INTC in my portfolio. I'm happy I sold it last year and bought something else. INTC looks more like a value trap than anything else for me. If you keep it, wish it will successfully switch their business model.
RE: Intel's Streak Officially Dead - daat99 - 09-14-2014
With a YOC of over 5% I'm keeping my shares.
Besides I know that Intel is focusing all its attention (and funds) to cover the gap in the mobile department with the competitors so I consider this as funds well spent.
RE: Intel's Streak Officially Dead - Turvok - 09-14-2014
I am glad I dumped mine about a year ago. We'll see how far it sells off tomorrow if all the DGI'ers sell since most have "do not cut or freeze a dividend" as one of their rules.
RE: Intel's Streak Officially Dead - Dividend Watcher - 09-17-2014
Well, I guess I started the ball rolling. Sold a November covered call today with a strike price at $36. If it hits, I won't be unhappy and if not, I can do it all over again.
RE: Intel's Streak Officially Dead - daat99 - 09-17-2014
(09-17-2014, 12:16 AM)Dividend Watcher Wrote: Well, I guess I started the ball rolling. Sold a November covered call today with a strike price at $36. If it hits, I won't be unhappy and if not, I can do it all over again.
Great move
Unfortunately for me its in an account where I can't sell calls
RE: Intel's Streak Officially Dead - Robert_NL - 09-17-2014
Holding INTC. They will raise the dividend soon. They have some problems now but these will eventually be solved and they will starting raising their dividend again. It's not like INTC will be going bankrupt soon.
RE: Intel's Streak Officially Dead - Kerim - 09-20-2014
I think there seems a lot fishy about the math in this short article, but I thought it interesting to see something so bullish about INTC's dividend going forward.
Quote:But Jefferies analyst Mark Lipacis, sees Intel as the semiconductor industry’s “next dividend growth story,” In a note published today., Lipacis argues that Intel could expand its per share dividend payments anywhere from 8% to 45% during the next 18 to 24 month.
RE: Intel's Streak Officially Dead - Robandcindy2 - 09-21-2014
This is where I will stick with a frozen angel for a spell to see how things go.