Does Intel Pay Dividends? Chip-Maker’s Payments Explored

Does Intel Pay Dividends?

Yes, Intel (INTC) pays dividends. As of July 2024, Intel dividends are paid quarterly, with the last one having been a cash dividend of $0.125 per share on June 1, 2024.

Intel is one of the biggest semiconductor chip producers in the world. Founded in 1968, the company is based in Santa Clara, California. It produces central processing units (CPUs), integrated graphics, motherboard chipsets, microprocessors, and graphics processing units (GPUs), amongst other things.

As of July 2024, the company’s market capitalization is $144.69 billion. On July 9, Intel’s shares were trading at $33.99.

When does Intel pay dividends, and how much? Will it ever increase its dividend? Find out more in this article.

Table of Contents Table of Contents

1. Does Intel Pay Dividends?
2. Key Takeaways
3. How Often Does Intel Pay a Dividend?
4. Intel Dividend History
5. Will Intel Ever Increase Its Dividends?
6. 4 Tech Stocks That Pay Better Dividends
7. What Are Dividends?
8. The Bottom Line
9. FAQs
10. References

Show Full Guide

Table of Contents

1. Does Intel Pay Dividends?
2. Key Takeaways
3. How Often Does Intel Pay a Dividend?
Show Full Guide
4. Intel Dividend History
5. Will Intel Ever Increase Its Dividends?
6. 4 Tech Stocks That Pay Better Dividends
7. What Are Dividends?
8. The Bottom Line
9. FAQs
10. References

How Often Does Intel Pay a Dividend?

Intel dividends are paid quarterly in March, June, September, and December. The last Intel stock dividend was a cash dividend of $0.125 per share, paid on June 1, 2024, with an ex-dividend date of May 6, 2024.

The ex-dividend date or ex-EFF date refers to the cutoff date for a certain quarter’s dividends, following which new investors are not eligible to be paid that quarter’s dividends.

The next Intel dividend is likely to be the same and is expected in September 2024; however, the exact date is yet to be announced.

Why Is Intel’s Dividend So Low?

One of the main reasons Intel’s dividends are low is that in June 2023, Intel cut them by 65.75%, down to $0.125 per share from $0.365 per share.

This was mainly done to achieve its target of $3 billion in cost savings in 2023, with the company also implementing other steps such as reducing headcount, salaries, and other rewards.

Intel said in a press release at that time:

“The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value. The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty.”

This was Intel’s first dividend cut since 2000. However, Intel’s CEO Pat Gelsinger has reassured investors that the company still intends to return to a phase of dividend growth in the future.

Intel Dividend History

Intel’s dividend history can be traced back to 1992, when the company paid its first cash dividend in December. Back then, the Intel dividend per share was $0.10. At that time, Intel experienced significant success in the PC market, mainly due to its tie-up with Microsoft (MSFT).

Intel dividends were paid with fluctuating amounts, depending on the company’s financial stance. The highest Intel annual dividend payment was in 2022 at $1.46 per share.

Since 1990, Intel has also bought back 5.77 billion shares at a total cost of $152.05 billion. As of March 30, 2024, the company was authorized to repurchase up to $110.0 billion, of which $7.24 billion remains available.

The company has also experienced 13 stock splits, the latest one being a 2-for-1 split on 30 July 2000.

Intel’s Dividend Yield

A company’s dividend yield ratio highlights how much it disburses in dividends compared to its stock price at the moment. A strong dividend yield is considered to be between 2% and 5%.

The current Intel dividend yield is 1.5%, which is above the Morningstar US Technology Index’s 0.63% due to tech stock dividend yields typically being fairly low.

Dividend yields can be used to analyze stocks and make sense of their growth potential and fundamentals. However, investors can’t solely rely on them, as some companies may have low yields due to their share price rising very fast, whereas others may have high yields but very low growth potential.

Intel’s Dividend Payout

A company’s dividend payout ratio conveys to investors what percentage of earnings it gives out as dividends. A good dividend payout ratio falls between 30% and 50%.

Intel’s current dividend payout ratio is 26%. This means that the company is potentially paying less dividends than it should in order to attract and retain the most investors. It also means that Intel has significant room to grow its dividends, with its earnings providing a comfortable cushion.

A high dividend payout ratio can leave the company with less capital for reinvesting, but a ratio that is too low could potentially cause investors to look elsewhere.

Intel’s Dividend Growth

The Intel dividend has seen considerable ups and downs ever since it started modestly in 1992 at $0.10 per share. However, by 1995, it had fallen to $0.04 per share before dipping further to $0.02 per share by 2000. It remained at the same level until 2003.

In 2013, Intel dividends reached $0.225 and climbed up to $0.30 in 2018.

By the end of 2021, quarterly INTC dividends increased to $0.347 before plunging to $0.125 in June 2023 and remaining at this level until now.

Will Intel Ever Increase Its Dividends?

Intel is very likely to increase its dividends again down the line, as the company has maintained that it wants to have a competitive dividend. However, this increase is likely to be in the medium to long term once the company’s cash flows and investments stabilize a bit more.

David Zinsner, Intel’s chief financial officer (CFO), also said in a press release:

“While we continue to prudently manage cash and capital outlays in the near term, we are setting the foundation for significant operating leverage and free cash flow growth when we emerge from this period of outsized investments.”

Intel is also a prominent participant in the semiconductor and artificial intelligence boom, which could significantly increase earnings and, in turn, dividends in the future.

4 Tech Stocks That Pay Better Dividends

What Are Dividends?

Dividends are remuneration paid to a company’s investors or shareholders for buying the company’s stock and holding it, typically for many years. They are paid on a per-share basis and can be given out in stock, cash, scrip, or property. They can be paid annually, semi-annually, quarterly, or even monthly.

Dividends are usually paid out from the company’s net profits, and companies often choose to increase them or pay a special bonus dividend during times of growth.

On the other hand, dividends are often decreased or canceled altogether when the company makes losses.

Why Are They Important to Investors?

Dividends are generally important to investors because they are seen as a source of additional stable income, which can then be used for retirement, debt payments, savings, and other investments.

They can serve as an effective tool to retain investors, who are more likely to be loyal to dividend-paying companies.

Dividend payments are also a way of thanking investors for holding a company’s stock through tough times.

The Bottom Line

Intel is one of the biggest semiconductor companies in the world, and it regularly pays shareholder dividends.

The company currently pays quarterly dividends in March, June, September, and December, with the last one being a cash dividend of $0.125, paid on June 1, 2024.

Intel’s current dividend yield is 1.5%, which is significantly above the Morningstar US Technology Index’s yield of 0.63%.

It’s yet to be seen whether the company will manage to resume the growth of its dividend, which was interrupted after the 2023 cut.

FAQs