Intel (INTC) 52-Week High

[Dividend Watcher]

(07-16-2014, 01:06 PM)TomK Wrote: Been a while since we discussed INTC. But I figured a day on which it is up over 7.5% would be as good a time as any to bring it back up. What a difference a year, makes, huh?

We were talking about 52-week highs at $26. Now we're looking at $34+.

You guys think the ship is righted, or is this out of hand?

Well, Tom, I never thought the ship was upside down.

In my opinion, INTC was undergoing another of their capital-intensive R&D phase to address some challenges and enter new markets. IIRC, they did something similar when the Pentium line reached its thermal dissipation limits and they came up with the "core" concept and even further back when they still were a major player in the DRAM market. Just the nature of their industry.

Unfortunately, the perception by everyone was that INTC was dead money and a dying company. I never believed the story (see my comments above). When Krzanich took over as CEO, I thought that added a breath of fresh air to the corporate bureaucracy and augured well for a more focussed path going forward.

Now for us DGI investor/owners, it's been tough with no dividend increases. I've held on in both my wife's and my portfolios other than trimming to diversify our portfolios further yet we still retained large positions and were reinvesting. Yesterday's earnings announcement was good news and I expect we will be seeing some good earnings reports for the next few quarters although not necessarily as big a jump as this one.

To me, it's fairly to a little overvalued here at $34. I trimmed some of wife's holdings because we're still working on diversifying her portfolio and it became her 2nd largest holding by quite a distance. I have my eyes on a couple things -- namely ESV or JNJ with the downturn in JNJ's price of the last few days. I'm still thinking of what I'm going to do here in my portfolio. I'd like to take a little off the table and add something else but haven't decided what yet -- REIT or utility maybe -- to boost the income stream. At this price, INTC's yield is under 3% and with less than 10 years to go, I need to watch the income stream even closer.

I was disappointed that they announced adding $20 billion to the buyback program but no dividend increase. We may see that as we get closer to the next quarter's payout.

Patience certainly helped.