Dow Dividend Stocks #3: Intel (INTC)
Next on our list of dividend stocks is Intel (INTC). The company reported earnings earlier this month that sent investors mixed signals. INTC missed earnings per share estimates by 1 penny and provided cautious guidance regarding revenues for 2014, sending shares lower by about 6% in subsequent days.
Although the company missed on EPS estimates, revenue rose to $13.83 billion against expectations for $13.7 billion. The PC market, from which INTC generates more than 80% of its revenue, has been the subject of much conjecture by tech analysts over the last year or so.
Research firms Gartner and IDC have estimated that global PC sales decreased as much as 10% in 2013, but now it appears that the decline has started to level off. Intel CEO Brian Krzanich declared in the company’s earnings release that they had “a solid fourth quarter with signs of stabilization in the PC segment.”
While the downward trend continues, it is slowing down significantly — PC sales were down only 5.6% in the last quarter of 2013 compared to the 7.6% drop seen during the previous quarter. If you believe the PC is making a comeback, you can pick up the shares right around the current $25 level and collect a solid annual yield of 3.6%.