Intel (NASDAQ:INTC) announced this morning that it would cut its quarterly dividend to 12.5 cents from 36.5 points, representing a reduction of 65.8%. INTC’s dividend rate is now at its lowest level in 16 years. The record date for the lowered dividend has been set to May 7, while the payday is June 1.
The announcement wasn’t all too surprising following Intel’s most recent earnings. Intel cited a commitment to a conservative capital allocation strategy that seeks to create long-term value and an uncertain macroeconomic environment.
“Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine,” said CEO Pat Gelsinger. “We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base.”
Along with the dividend cut, the chip company reaffirmed its guidance for Q1. Revenue is expected to tally between $10.5 and $11.5 billion, while gross margin is forecasted to be 34.1% on a GAAP basis and 39% on a non-GAAP basis. Intel also forecasts unprofitability with an earnings per share loss of 15 cents on a non-GAAP basis.
With that in mind, let’s look at nine other companies that have cut their dividends this year.
Intel and Nine Other Companies With Dividend Cuts in 2023
- Taiwan Semiconductor Manufacturing (NYSE:TSM): Earlier this month, Taiwan Semiconductor announced that it had cut its dividend to 35.97 cents from 45.80 cents, representing a reduction of 21.5%.
- VF Corp (NYSE:VFC): VF, the company behind brands like Supreme and Timberland, cut its dividend to 30 cents from 51 cents, marking a drawdown of 41.2%.
- UBS Group (NYSE:UBS): UBS announced on the last day of January that it would reduce its dividend to 17.9 cents from 50 cents, a 64.2% decline.
- ASML (NASDAQ:ASML): The semiconductor equipment company lowered its dividend by about 15% to $1.26 from $1.49.
- GSK (NYSE:GSK): GSK’s dividend now stands at 34 cents, down 7.9% from 36.95%.
- RLI Corp (NYSE:RLI): RLI lowered its dividend by a massive 96.4% to 26 cents.
- Weyerhaeuser (NYSE:WY): The timberland company dropped its dividend to 19 cents, down 78.9% from the previous value of 90 cents.
- Hennessy Advisors (NASDAQ:HNNA): Hennessy announced that it would drop its dividend to 13.75 cents from 13.80 cents, a decline of 0.36%.
- MiX Telematics (NYSE:MIXT): The dividend for MIXT was lowered to 4.4 cents from 6 cents, representing a drawdown of 26.7%.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Artificial Intelligence, Financial, Fintech, Consumer Discretionary, Retail, Semiconductor, Technology