Intel Inside What?

Intel may be inside your car or some other device you use.

Several of the laptop computers we have owned have had an “Intel Inside” sticker. My current Dell laptop has one that says “Intel CORE i7 7th Gen.”  But it is a mistake to equate Intel with just the computers or servers that are a part of just about every business on the planet. Of course, Intel does have competition, but they also have a long history of innovation. They have been around since before I graduated from high school.

A Dividend Growth Story

INTC currently has a dividend yield of 2.51% and an excellent, sustainable dividend payout ratio of 29.30%. Both of these values fit my requirements for a technology sector investment. In addition, INTC has an 18-year record of increasing dividends, and a 5-year growth rate of 6.58%. INTC has its detractors and challenges, but they have a new CEO. In my experience, new CEO’s can help examine what is working and improve it and find what isn’t working and either fix it or discard it. Certainly, semi-conductor companies like AMD, AVGO, NVDA, QCOM, and TXN are worthy investments as well. In fact, I own shares of INTC and TXN.

Dividend Growth is great for retired investors.

Covered Calls Profits Too

In addition to the delightful dividends, I have also been selling covered calls on some of my INTC shares. Thus far in 2021 I have sold three covered calls for a total income of $419.84. The good news is that my shares were not called away, so I can continue to resell covered calls as long as I pick a strike price that doesn’t result in a success for the buyers of my covered calls.

Business Profile

If you own something that has technology inside, you probably have Intel components in your home or car. Intel’s chips are already designed into 30 vehicle models that are on the road and are being used in hundreds of autonomous test vehicles, the company said. It doesn’t break out how much revenue is generated by that market.

Intel Corporation designs, manufactures, and sells essential technologies for the cloud, smart, and connected devices for retail, industrial, and consumer uses worldwide. The company operates through six business segments. It offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and non-platform or adjacent products comprising accelerators, boards and systems, connectivity products, and memory and storage products. The company also provides Internet of Things products, and computer vision and machine learning-based sensing, data analysis, localization, mapping, and driving policy technology. It serves original equipment manufacturers, original design manufacturers, and cloud service providers. Intel Corporation was founded in 1968 and is headquartered in Santa Clara, California.

Full Disclosure

Cindie and I own a combined total of 700 INTC shares and 125 shares of TXN. The combined current value of these shares is about $60K.

Always know if you are looking for value or growth when you invest. Buy quality.

Investor Link for INTC