Intel: Dividend Faces Major Risk


  • Intel slashed employee pay in a desperate sign the company has cash flow problems.
  • Management appears committed to the dividend, yet the $6 billion in annual pay-outs are problematic for a business under pressure.
  • The stock faces more downside pressure on a cut or even elimination of the dividend.

Salary reduction, recession, financial crisis

mohd izzuan

Any company paying a dividend while not being free cash flow positive is paying a dividend at risk. Intel (NASDAQ:INTC) is the latest company at risk of needing to cut the dividend due to huge

Data by YCharts

Data by YCharts

Long-term guidance table

Source: Intel ’22 Investor Meeting

Disclosure: I/we have a beneficial long position in the shares of LUMN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.

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