- PE Ratio: 13
- Dividend Yield: 3.8%
- Payout Ratio: 49%
It’s been a bumpy ride over the last few year for leading chip-maker Intel (INTC), as the world slowly shifts away from a PC-centric model to mobile devices; indeed, tablet sales are expected to beat PC sales for all of 2013, and Intel is playing from behind in the market.
Lagging revenues and lower profits are keeping the stock down, and its very manageable P/E suggests a possible bargain price for your RMD money.
Throw in a dividend yield of well over 3%, and the investment potential looks even stronger. Despite losing some ground to up and comers like Qualcom (QCOM), Intel still holds the #1 spot in chip making, and the company sits on over $17 billion in cash, while generating $4.7 billion in cashflow, both based on June 2013 second quarter numbers.
Look, Intel isn’t the kind of company that’s just going to sit around and watch the tech-world go by; as Brad Moon points out, Intel is going to find it’s way into the mobile world over time, and with that move should come both revenue and profit growth. In the meantime, settle in for a steady flow of dividends and dividend increases on an annual basis.
It will be worth the wait.