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.
I've decided to hold my shares, I think it would be different if they cut the dividend but they merely held it at it's current level. If you look at the dividends over the past 10 years you'll see that the dividend growth is still amazingly high (nearly 30%) even though they haven't raised the dividend every 4 quarters.
ReplyDelete( http://www.buyupside.com/dividendcharts/dividendchartdisplay.php?symbol=intc&interval=tenyears )
Fundamentally INTC has some issues to resolve going forward but personally I wouldn't sell strictly because of them not increasing the dividend.