5 Fat Dividend Yields to Consider: Intel Corporation (INTC), Northern Tier Energy LP (NTI), Nam Tai Electronics, Inc. (NTE)

Page 2 of 2

Nam Tai Electronics, Inc. (NYSE:NTE) , a China-based company yielding 4.2%, has seen its stock surge 176% over the past year. It’s involved in the manufacturing of tablets such as the iPad mini. In its strong fourth quarter, the relatively unknown company reported sales up 263% over year-ago levels, and noted that it’s boosting profit margins by shedding less profitable operations. Bulls like its forward P/E of 7, but a concern is a recent dip into negative free cash flow.

Intel Corporation (NASDAQ:INTC), yielding a solid 4.2%, also appears attractively valued, with a forward P/E of roughly 10. (It’s been upping its payout at a good clip, too.) The declining PC market has hurt the company, but Intel is moving into more promising mobile offerings in response — as well as Internet TV offerings. The giant still has competitive advantages, though, such as scale and lots of cash, and its Ultrabooks that draw much less power than before are promising. Some see the company doing more with contract manufacturing, perhaps even for iDevices, which could generate a lot of revenue.

Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO), yielding 4.4%, is a fabless semiconductor company, focusing on consumer electronics applications. Recently disappointing investors with its fourth-quarter earnings report featuring declines in revenue, earnings, and margins, the Taiwan-based company’s stock is down about 30% over the past year. Bulls like its solid balance sheet and positive free cash flow, though, and management expects that “our gross margin will improve as our product mix shift toward new growth products.”

It’s smart to seek out healthy dividend payers for your portfolio. There are many others to consider along with these.

The article 5 Fat Dividend Yields to Consider originally appeared on Fool.com.

Longtime Fool contributor Selena Maranjianwhom you can follow on Twitter, owns shares of Intel. The Motley Fool recommends Intel. The Motley Fool owns shares of HI-CRUSH PARTNERS LP (NYSE:HCLP) UNIT LTD PARTNER INTS and Intel.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2