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Well… It finally happened. After much speculation, Intel Announced that they would be cutting their quarterly dividend 66%, to 12.5 cents per share. This brings their forward looking annual dividend to 50 cents and a current dividend yield of around 1.9%. My initial investment thesis for Intel is now broken. I was wrong. In today’s video, I’m going to explain the reasoning behind this dividend cut and share what I’m doing with my Intel stock.
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I was waiting for you to post this. I sold too and put it into MSFT.
I went AVGO. Will be adding more to MSFT if they get below $240 again. If not will increase buy price
I was wrong…
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Nobody is 100% right when it comes to THE STOCK MARKET. The government will do something good with intel they need that platform for the future.
Knew this was coming from a mile away , learned my lesson with AT&T still waiting to break even , but I’m just sticking to companies with growing earnings and steady dividend growth
Yep, but plan on buying in back in towards end of year.
@Dividend Data Got any plans on energy? DVN is seemingly cheap right now
Isn’t AT&T flat/higher from the time they cut their dividend? I bought a little before the WBD spinoff and dividend cut and I am up on AT&T
@Travis Nabbefeld maybe he had bought it before the cut when it was higher
what u buying
I’ve been staying away from Intel for a while now, put that money into NVDA instead.
Have 35 shares with avg 29.60. I’m only 21 so I have a longer time horizon than other investors so I’ll wait it out.
I got 100 at 26.80. Not worried really, just look up tech reviews. You be surprised how many gamers and techies are showing love for Intel. GPU at 250-350 range and showing more and more they are outperforming Amd and Nvidia gpu that range in the 600 and even the 1000 range.
They are happy hearing about their Intel Xeon.
I have 30 shares and plan on holding for years to come. They will bounce back, even in this weakened state they still sell 3 to 4 times the numbers of the next nearest competitor. Whats killing them is that gross margin being so poor cause they have not raised prices enough and the factories are not at full capacity due to the over supply. At least that is my DD on the situation.
If I wasn’t in TXN I would definitely own shares of AVGO. I think both are fantastic companies.
You can own both. I do.
@James Peter Oh I know. Its just that I only like to own a certain amount of stocks and I don’t want to lean my portfolio too much into tech. I own Texas Instruments and Apple and both are pretty sizable positions.
Its the way my portfolio is set up and my overall investment strategy that it doesn’t work out. I only have room for one semi-conductor company and I have to pick which one is the best.
Like I said though its nothing against Broadcom and I still think they are a fantastic company.
Charlie Munger was right when he said the semiconductor is a business where you need to spend all the time to be near or at the top. It’s a cut throat business.
Munger was right
My simple thought is that high dividend yields and the tech industry just don’t go well together. You need massive investments to keep improving technology year after year to be and stay succesfull, you don’t have and should not have a lot of excess cash to give to shareholders. (High Yield on Cost is of course another story!)
Glad you got into AVGO, one of the most slept on dividend beasts in the market
I’m holding my small position and possibly buying more when the dust settles. I think it was a healthy decision and I think the economy for chips will be big enough for Intel to make a profit in the future
I held intc for more than a decade. And the stock price went absolutely nowhere! Learn from my experience! Stay away from companies that require high capex, are losing market share and now cutting its dividend like intc. There’s often way more and worst news ahead than you think. Stop getting too attached to your ego and keep holding on because you want so desperately to be proven right or because it hurts to admit you were wrong and you had to correct this mistake. Save whatever capital you can today! Only then can you grow it by redeploying it elsewhere. Because either an investment is much better than all the choices that you can find out there or it is not.
Their cashflow is better used growing operations. Healthy choice. Bet the dividend will grow back when operations are in full swing.
Makes sense, more and more computers use AMD they make such superior products to Intel for less money.
Just like how everyone should’ve loaded up on $T. This is a massive buying opportunity.
Stop giving stupid advices. T and INTC are obvious dividend traps.
$T is a dog – debt, debt and you can now get money market rates at just 50bps less than $T’s dividend……with no risk
I bought INTC when it dropped to 24.97, then sold at like around the 29s, waiting for it to drop even harder
Man I got lucky. Sold out of my intel while I was ahead about 2-3 weeks ago. After I saw how bad things were looking I had to sell.
They did what had go be done. Should cut it to Zero. i sold a while ago after they cut R&D Budget by 800Million. Turnaround speculations are always a Gamble.
I feel like you need a little more discipline on your purchases. at&t and now intel. You buy them both, hold them for a very short time and then sell at a loss. I think you’re going to find that you gave up on at&t too soon.
Waiting for it to dip into the high teens, but long term could be an interesting investment if they pursue the third party fab track.
Thanks for the video, and thanks for saying you were wrong and lost money, it’s a situation we can all learn from, and that in investing we dont always pick the right stocks, i sold AT&T when they spun off the media and cut the dividend, and if that’s too much risk for you there’s no shame in index funds, I keep 50% in index funds to help calm me in situations like this.
Before I watched the video I came into it thinking that you made a mistake to buy and hold onto Intel for so long, and that you were probably making a mistake by selling out so quickly. But after watching this video I changed my mind and agree with your decision to sell and where you invested the money (even though I don’t own AVGO), I made the mistake of buying into DIS & T and not selling out earlier as well.