Intel: Resetting Dividend Expectations To Take On TSMC


  • Intel slashed its dividends by nearly 66%. Are you surprised? You shouldn’t be.
  • Before the cut, Intel was expected to post a negative free cash flow of nearly $8B in FY23.
  • As such, the original $6B in annualized dividend payout has been reduced closer to the $2B mark.
  • Therefore, it has given Intel much better flexibility in investing further to bolster its ability to catch up with TSMC.

President Biden Speaks On Rebuilding Country"s Supply Chains In U.S.

Chip Somodevilla

Intel Corporation (NASDAQ:INTC) investors waiting for a steeper pullback into the $20s got one yesterday.

Thanks to its massive dividend cut that slashed its quarterly dividend from $0.365 per share to $0.125 per share (a cut of nearly 66%), income investors

INTC price chart (weekly)

INTC price chart (weekly) (TradingView)

Disclosure: I/we have a beneficial long position in the shares of INTC, AMD 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.

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