Intel: The Dividend Should Have Been Cut Completely, Remains A Value Trap


  • Intel has reported very poor results, and its guidance for Q1 2023 was quite negative.
  • Its current dividend cut was not unexpected, and the company should have cut it completely to save cash.
  • Due to highly uncertain business prospects and a poor track record of strategy execution, Intel remains a trap.

Entrance of The Intel Museum in Silicon Valley.

JHVEPhoto/iStock Editorial via Getty Images

Intel (NASDAQ:INTC) has reported very weak operating trends recently and business prospects are highly uncertain, it remains a value trap even after its dividend cut.

As I discussed in a previous article some months ago, while


Earnings surprise (Bloomberg)


Dividend (Bloomberg)


Foundry segment (Intel)

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

If you are a long-term investor and want to be exposed to several secular growth trends, check out my marketplace service focused on different secular growth themes, namely: Digital Payments/FinTech, Semiconductors, 5G/IoT/Big Data, Electric Vehicles, and the Metaverse. If this is something that you may be interested in sign up today.

Leave a Reply

Your email address will not be published. Required fields are marked *