Shares of Intel Corporation (NASDAQ: INTC) are in the green this morning even after the semiconductor behemoth announced a massive cut to its dividend.
On Wednesday, the multinational technology company trimmed its quarterly dividend by a whopping 65% to 12.5 cents a share.
The announcement arrives shortly after Intel Corporation promised $3.0 billion in cost savings this year. CEO Pat Gelsinger confirmed in the press release, though, that the company planned on growing its payout again over time.
The board and I continue to view the dividend as a critical component to the overall attractiveness of Intel.
Last month, the Nasdaq-listed firm also reported its largest quarterly loss since 2017 as Invezz posted HERE. For the year, Intel stock is roughly flat at writing.
It’s the first time in more than two decades that Intel Corporation has resorted to slashing its dividend. Intel stock now pays a dividend yield of just under 2.0%. CEO Gelsinger added:
Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine.
Also on Wednesday, Intel Corporation reiterated its outlook for 15 cents of adjusted per-share earnings in the first quarter but refrained from offering full-year guidance due to economic uncertainty.
Earlier today, our financial analyst Crispus Nyaga identified a bearish flag pattern on the Intel stock’s weekly chart. Wall Street currently has a consensus “hold” rating on INTC.
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