Current Dividend Yield: 4.1%
Performance So Far in 2012: -10%
Another tech stock at the top of the list is Intel (NASDAQ:INTC). But unlike HP, the dividend yield is a product both of increasing distributions — its recent bump from 21 cents to 23 cents a quarter boosted the yield — and unfortunate share price declines. But if you’re looking for a tech turnaround, INTC might be better positioned than HP is right now.
First, the bad: The company recently was bumped from Warren Buffett’s holdings in Berkshire Hathaway (NYSE:BRK.B, BRK.A). No surprise why as the post-PC age is weighing on shares, evident most clearly in a fall for both profit and revenue this week in its earnings report.
However, it’s hard to bet against INTC in the long term. A huge yield makes this Dow component and top dividend payer attractive, but it’s also very much at the heart of the information age. Yes, Intel is suffering as PC sales dwindle — but as the world’s largest semiconductor manufacturer, it’s foolish to think that because laptops are becoming obsolete, this company is too. INTC has its fingers in many electronic pies, and is making a big push into mobile that certainly will pay off later. Intel is focusing on mobile semiconductors and Ultrabook sales to fill in any lost ground.
It’s also worth noting that INTC, like others on this list, is a cyclical stock — without consumer demand for electronics or businesses buying new hardware, INTC is going to see headwinds. That means you might want to get in now and enjoy the nice dividend in anticipation of a longer-term recovery and mobile revenue stream.