Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Intel Corporation (INTC): Rising Dividends May Slow, Says Analyst

Intel Corporation (NASDAQ:INTC) has been a popular play for many investors – including a good number of hedge funds that we track – for quite a few reasons, but not the least of which has been the company’s tradition of increasing its dividend every year as the company has grown. But according to a research note by Stacy Rasgon of Bernstein Research Thursday, it appears that era of good may be slowing if not stopping. He says that Intel’s recent investments in factories and stock buybacks have cut down the company’s cash reserves from where those dividends would come.

Intel Corporation (NASDAQ:INTC)

Rasgon wrote, “We believe a continued slower pace of dividend increases is possible versus what investors have enjoyed in the past, under our current forecasts for the company’s growth.”

Intel Corporation (NASDAQ:INTC) has been working hard to keep its microchips costs low to help promote ultrabooks, which use Intel’s chips very heavily. That has contributed somewhat to the slow er pace of dividend increases recently, Rasgon wrote, but also cited the building of more factories and a share buyback program that has also depleted the company’s cash stash to a level “well below … peers” – whatever that might mean.

What are your thoughts? Are you invested in Intel Corporation (NASDAQ:INTC), and if so why? Is it because of the dividends, or the products? Whether invested or not, let us know your thoughts in the comments section below.

DISCLOSURE: I own no positions in any stock mentioned.

Please see these related INTC articles:

Why Intel Can’t Get Its Arms Around ARM

Intel Mobile Prospects Have Upside

Apple vs. Intel – Better Investment?

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.