Current Dividend Yield: 4.3%
Performance So Far in 2013: +2%
Intel (NASDAQ:INTC) has rocketed up this list in the past year, but not necessarily for the best reasons. While it has increased distributions (most recently, from 21 cents to 23 cents last summer), its yield also soared as a result of its share price dropping 20% in the past year.
But while Intel faces a number of questions about its ability to grow in a post-PC world … it might not necessarily need to grow all that much (if at all) to be useful to long-term investors.
After all, despite being in Big Tech, its dividend is decidedly Big Tobacco, to hear Charles Sizemore talk about it. And so are several aspects of its business. Its industry is in decline, but it still has an enormous share of that market at 16%, trumping the No. 2 and No. 3 players combined. It has a conservative balance sheet. Not to mention, it also has a fantastic valuation of less than 10 times earnings — something you actually can’t say for tobacco stocks right now.
Intel’s not necessarily dead in the water, either. Its place inside Microsoft’s Surface tablet at least gives it some shot of making ripples in the mobile space, and there’s even talk it might become bedfellows with Apple (NASDAQ:AAPL) — be it for iPhone processors, or maybe even as a partner in making a smartwatch.
But even if it is, INTC still yields north of 4%, boasts a decent track record of growth — its dividend has improved 40% in just two years — and has room to grow further as it pays out just 37% of its earnings in dividends.