Is Intel Stock’s 5.25% Dividend Yield Safe?


  • Intel’s Q4 horror show was yet another speed bump on the semiconductor giant’s ride to glory, and the threat of a dividend cut now looms large.
  • In this article, I share my analysis of Intel’s elevated dividend yield of 5.25%, which is ~10x that of its sector’s dividend yield.
  • In my view, deteriorating financial performance, poor business outlook, growing balance sheet leverage, and an uncertain macro picture render a dividend cut at Intel highly likely.
  • Despite the rising threat of a dividend cut, I continue to rate Intel a modest long-term “Buy” at $28.
Economic Downturn Hits Once-booming Silicon Valley

David McNew/Hulton Archive via Getty Images


In my latest research note, we briefly discussed Intel’s (NASDAQ:INTC) elevated dividend yield, and based on reader feedback, I have realized that a deeper look into this subject is warranted.

Amid a poor macroeconomic backdrop, Intel’s business has come under

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