Intel Stock Dividend Yield History & Payout [Analysis]

In-Depth Analysis of Intel Stock Dividend Yield, Growth, Reliability & Payout. Is INTC a Better Dividend Investment than FANG [FB, AMZN, NFLX, GOOGL] Stocks?

Intel Corp Dividend History

Those seeking a cheaper alternative to NVIDIA (NASDAQ: NVDA) should look to the Intel Corp (NASDAQ: INTC). Intel delivers a higher dividend yield and payout than NVIDIA at a lower price.

Intel shareholders enjoyed a dividend yield of 2.39%, an annualized payout of $1.20, and a payout ratio of 29.1% on August 10, 2018. Yet they only paid $48.91 a share.

On the same day, NVIDIA offered a dividend yield of .24%, an annualized payout of 60¢ and a payout ratio of 8.5%. Despite the lower dividend numbers, NVIDIA shares were trading at $254.30 on August 10, 2018.

Intel’s Dividend is Growing Faster than NVIDIA’s

These numbers demonstrate that those seeking a dividend from a chipmaker would be better served by Intel. Intel not only offered a yield, it delivered a higher dividend. The latest is 30¢ scheduled for September 2, 2018. NVIDIA investors received a dividend of 15¢ in May 2018.

Thus Intel’s recent dividend growth exceeds NVIDIA’s. For example, Intel’s dividend increased by 2.65¢ in 2018. In detail, Intel paid a 2.725¢ dividend on December 1, 2018 that increased to 3¢ on March 1, 2018.

On the other hand, NVIDIA paid a 15¢ on September 21, 2018, that will increase to 16¢ on December 21, 2018. Hence, NVIDIA’s dividend only increased by 1¢ in 2018, despite its high stock price.

Intel is Experiencing Substantial Dividend Growth

There is one aspect of Intel’s dividend that should give investors pause. Its growth is not as steady or as reliable as NVIDIA’s is.

The NVIDIA dividend has been growing for around 14 years. Intel’s dividend has only been growing for the last three years.

Intel delivered a quarterly dividend of 22.5¢ for over two years from August 2012 to November 2014. The dividend started growing again by jumping 24¢ in February 2015; it increased to 26¢ in February 2016, 27.5¢in May 2017, and 30¢ in January 2018.

Therefore, Intel has experienced steady dividend growth for the past three years. More importantly, the company has experienced substantial dividend growth for the past three years.

[Related Article: The Best Stock Screeners To Find Dividend & Value Stocks]

Is Intel Corporation a Good Growth Stock?

Here you can see our 5-year stock chart of the stock price growth for Intel Corp.

Intel has a very Reliable Dividend

Furthermore, Intel has a very reliable dividend. It has paid a cash dividend every quarter since October 1992.

That means Intel has been paying a dividend every quarter for nearly 26 years. Intel’s dividend started at 10¢ in October 1992. Then fell to 5¢ in 1993, rose to 6.5¢ and 6¢ in 1994, fell to 4¢ in 1995, rose to 5¢ in 1996, fell to 3¢ in 1997, and dropped to 2¢ in 2000. The dividend stayed at that level 2004 when it doubled to 4¢ and 2008 when it rose to 8¢

The most impressive thing about Intel’s dividend history is its reliability. Intel kept a growing dividend right through the great economic meltdown of 2007-2008.

Intel was paying a dividend of 10¢ in 2006, that payout increased to 11.25¢ in 2007 and 14¢ in 2008. Then remained at 14¢ until 2010 when it increased to 15.75¢. That dividend increased again to 18.12¢ in 2011. The Intel dividend actually rose during the worst economic crisis of the past 70 years.

More impressively, Intel’s dividend has not fallen below 20¢ since 2011. The dividend reached 21¢ in 2011, and 22.5¢ in 2012.

Intel’s dividend has not experienced a serious drop since the year 2000. In addition, the Intel dividend has been slowly growing since 2004. Therefore, Intel has the unusual attribute of being a tech stock with a reliable dividend.

How Much Money is Intel Making?

The financial numbers show that Intel has the resources to support its dividend.

Intel reported quarterly revenues of $19.163 billion for 3^rd Quarter 2018 on September 29, 2018. Moreover, Intel reported a net income of $6.398 billion, an operating income of $7.349 billion, and a gross profit of $13.36 billion on the same day.

Impressively, Intel’s revenues grew at a rate of 18.66% during 3^rd Quarter 2018. In addition, Intel completed 3^rd Quarter 2018 with a gross margin of 64.5%.

Plus there was plenty of cash at Intel in the form of a quarterly free cash flow of $4.984 billion and an operating cash flow of $8.835 billion on September 29, 2018. Going beyond cash flow Intel recorded $3.407 billion in cash and equivalents and $9.779 billion in short-term investments on September 29, 2018.

Thus, Intel had $13.186 billion in cash on hand at the end of 3^rd Quarter 2018. Therefore, Intel has plenty of cash to pay out as dividends.

Intel’s business is growing and generating large amounts of cash. The dividend will survive if these financial results continue.

Is Intel a Good Value Investment?

Another fascinating characteristic of Intel is that its stock is a value investment.

The value parameters at Intel include the low stock price ($46.53 on December 10, 2018) and the dividend. Beyond that, Intel’s business has many of the attributes of a classic Ben Graham or Warren Buffett-style value investment.

For example, Intel is a manufacturer that makes physical products rather than software. The physical products are the chips and the processors that applications and algorithms run upon.

Therefore, we can view Intel (like NVIDIA) as an infrastructure company. Intel builds critical components of the infrastructure that the internet, the Cloud, e-commerce, streaming video, and social media operate upon.

Is Now a Good Time to Buy Intel Corp Stock?

In terms of Market Timing for a Stock purchase, you can look at Technical Analysis Provided by TradingView. This is a summary of the Stock Chart Indicators Relative Strength, Stochastic, CCI, ADI, Momentum, MACD and a suite of Simple and Exponential Moving Averages.