Dividends in Focus: Intel Corporation (INTC)

Computer processing giant Intel Corporation (INTC) had a but of a stumble midway through 2013, but it was able to fight its way back for gains of approximately 20% this year. Let’s examine the company’s current dividend policy and what lies in store for the stock in 2014 from a dividend perspective.

Intel Corp ‘s Current Dividend Policy

Intel makes quarterly dividend distributions to its investors and is currently offering a yield around 3.6%. The stock’s quarterly payout of $0.23/share has held steady for the last six quarters, meaning that this will be the first year since 2003 that the company has not increased its dividend (though its payout on an annualized basis is still up from last year). Its current payout ratio sits around 48% for 2013, which will hold steady in 2014, based on analyst estimates that earnings will remain unchanged.

Dividend.com DARS Ratings for Intel Corp Overall Rating:Neutral (3.3/5) Metric Rating Explanation

Relative Strength		Stock is performing in-line with the market or better.
Overall Yield Attractiveness		Stock’s dividend yield is above average.
Dividend Reliability		This rating is related to the length and consistency of a company’s dividend payouts, as well as our opinion on how likely the company is to continue payouts in the future.
Dividend Uptrend		Dividend payouts are consistent, but increases small.
Earnings Growth		Earnings estimates have been cut slightly.