Intel: Dividends At Risk, But It Doesn’t Matter For The Long-Term


  • Intel’s catastrophic performance in Q4 and a weak outlook for Q1 indicate that it would be hard for the business to become FCF-neutral in 2023.
  • As a result, there’s a risk that the management would be required to cut the dividends at the end of the year to decrease the cash burn rate.
  • However, Intel’s stock could be a solid investment for long-term investors due to the company’s potential to access a significant pool of public funds to decrease the costs of turnaround.

Intel Expected To Post Favorable Earnings

Justin Sullivan

There’s no denying that Intel’s (NASDAQ:INTC) latest earnings report for Q4 was catastrophic. Not only did the company experience a Y/Y decline in revenues and performed below the street expectations, but it’s now a certainty that it will

Intel's DCF Model

Intel’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Intel's DCF Model

Intel’s DCF Model (Historical Data: Seeking Alpha, Assumptions: Author)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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: Bohdan Kucheriavyi and/or BlackSquare Capital is/are not a financial/investment advisor, broker, or dealer. He’s/It’s/They’re solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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