Is Intel A Ddividend Powerhouse?

Today we'll examine Intel (Nasdaq: INTC), the world's largest manufacturer of microprocessors with 80% of the total market share. Boasting a perfect score of seven out of seven, Intel is the teacher's pet proudly perched at the head of the class. With a dividend payout ratio of 34%, the stock is considered a healthy dividend payer bestowing profit on shareholders, while sustaining company growth. Intel enjoys a very modest level of debt and trades at a much more attractive valuation than its classmates.

Intel is in a dominantly competitive position within the semiconductor industry. Its large size provides tremendous scale advantage over smaller rivals. And the company has a strong balance sheet with low debt levels compared to peers and generates substantial free cash flow. Intel's board of directors recently increased its quarterly dividend 7%, which represents the third dividend increase in the past 18 months, and underscores Intel's impressive financial strength. I think Intel is a real dividend powerhouse and currently appears to trade at a sensational value.

Source: Motley Fool

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