Current Dividend Yield: 3.4%
Performance So Far in 2012: +8%
Intel (NASDAQ:INTC) might have gotten the axe from Buffett’s portfolio as Berkshire Hathaway (NYSE:BRK.B) trimmed its position in this stock, but Intel remains one of the biggest dividend payers in the whole tech sector.
A 3.4% yield makes this Dow component one of the 10 top dividend payers, and that’s attractive in and of itself. However, any investor who has been around the block understands that a long-term dividend portfolio should be diversified as well as high-yielding, and Intel plays a vital role in giving tech exposure but without stomaching a middling 2% yield.
As a chip manufacturer, Intel is very much a cyclical stock — without consumer demand for electronics or businesses buying new hardware, INTC is going to see headwinds. That’s what has happened in the past five years as Intel has largely bounced around between $20 and $26 per share since the beginning of 2008.
Shares remain at the top of that range, but with a P/E of about 10.3, it’s hardly like INTC is one of those super-growth tech stocks that investors are overreaching to buy.
Semiconductors and chips will always have strong baseline demand, and as the No. 1 manufacturer in the world, Intel remains a stable tech stock with an attractive yield. And while growth isn’t off the charts, Intel is still expanding by focusing on mobile semiconductors and Ultrabook sales.