Intel (NASDAQ:INTC) has been steadily increasing its dividend since its first payment in 1992, including a 16% hike in its payout last year. INTC currently yields about 3.2%. That’s fairly attractive — and makes it one of the top 10 Dow dividend stocks. But it’s paying just 84 cents per share annually and projected to rake in $2.53 in earnings per share for fiscal 2012 — meaning its payout ratio is only 33%.
Some might argue that Intel faces threats like the rise of tablets and decline of PCs, but that’s just posturing to stay stingy. Intel’s profits have more than tripled since 2009 — so even if current threats slow momentum, there’s a lot of past success that hasn’t been shared with stockholders.