Indeed, investors have started to realize that the company is a device maker and needs to keep selling more and more tech gadgets to keep sales headed higher. New customers or new tech toys are the only way to do that. That said, the company’s top line continues to head higher at an impressive pace and has done so for more than a decade.
A new dividend and plans to buy back shares using debt have changed the company’s makeup. But with a yield of around 2.70%, it might actually be a good option for growth and income investors that believe Apple can continue to wow customers.
Microsoft Corporation (NASDAQ:MSFT) might actually be a better customer target. The OS giant also missed out on the mobile shift and has been playing catch up. However, Intel and Microsoft Corporation (NASDAQ:MSFT) have a long history of working well together. Part of Microsoft’s growth plan is to make its various operating systems look and feel similar. Another part is to start making some of its own devices.
For example, Microsoft is making its own tablet, called the Surface. While it partners with others on phones, like Nokia Corporation (ADR) (NYSE:NOK), if Intel can get a foot in the door with Microsoft Corporation (NASDAQ:MSFT) and its Windows Mobile OS, it could start to see more wins. The deals might not come from the industry leaders, but that doesn’t mean it won’t add up to a real business.
Microsoft, for its part, has seen its shares rise as it pushes harder in the mobile space. The company has a long history of dividend increases and an around 2.60% yield. Like Intel, shares are still in a decade long trading range. If its mobile OS starts to gain traction, its shares are likely to head higher.
For investors, Intel Corporation (NASDAQ:INTC) and Microsoft might actually be a good pair for income and turnaround potential. While they may never see the success they experienced with PCs, there’s every reason to believe that each will be able to break into the mobile space and make plenty of money in the process. Growth and income investors should take a look at the duo.
The article A Big Win for This Chipmaker originally appeared on Fool.com and is written by Reuben Brewer.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple and Intel. The Motley Fool owns shares of Apple, Intel, and Microsoft. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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