Today Intel announced its dividend for Q3. The board of directors decided to keep the dividend static for the fifth quarter in a row, I was really anticipating a raise of at least 1 cent per share.
This forces me to make a decision. Intel is losing the tablet and mobile business, therefore future earnings are hard to predict. While the stock might appear cheap now, it could be considered a value trap by some.
I held onto the stock for its raising dividends and high yield. A dividend that is static for five consecutive quarters, that is not a good sign. Although it might be a smart move by the board, conserving cash to strengthen the business.
I'm just not sure how to interpreted this. I might sell in the near future and use the proceeds to buy something that I'm more sure of.
I have to think about it for a little bit. Do I hold onto the stock, or do I sell and buy something else? I'm interested to see what other bloggers will do with their Intel shares. I know a lot of dividend growth investors have a position in Intel. What do you think, sell or hold?
Thanks for reading.