Intel (NASDAQ:INTC) announced that it will increase its quarterly dividend by 7.1% to 22.5 cents a share.
This marks the third time in 18 months that Intel has boosted its quarterly dividend.
The company says it is raising its dividend based on burgeoning sales of chips for smartphones and other mobile devices, which will lead to “record revenues” this year.
Demand for the company’s traditional chips, used in personal computers and a variety of other devices, is also expected to remain strong for the rest of the year, according to company officials.
Shares of Intel had risen 15% so far this year.
In mid-afternoon Monday trading, Intel shares were up fractionally.