Tech Dividend Stocks: Intel (INTC)
Dividend yield: 3.7%
Intel (INTC) is another one of those dividend stocks that most investors have left for dead as a relic of the past. However, the stock’s 14% appreciation in the last 12 months vs. 20% for the S&P 500 doesn’t tell the whole story.
But the company continues to innovate, and Intel just announced two new Atom chips at the Mobile World Congress that could really make a splash. The new chips feature high speeds, low power drain and the capability to run Android software from Google (GOOG) as well as Windows software from Microsoft (MSFT).
But even if you don’t believe in the potential of Intel’s latest chip line, it’s important to remember that this company is far from doomed if it doesn’t catch on. INTC boasts operating cash flow of more than $20 billion annually, with another $30 billion in cash and investments in the bank. That kind of cash tends to keep dividend stocks like INTC running.
The company also has a robust 3.6% dividend yield that is very sustainable at little less than half of projected earnings for 2014. And while Intel isn’t a storied blue chip with 100 years of history, it’s worth noting the company has indeed paid dividends since 1992 – much longer than most tech dividend stocks out there.