Cut helps pay for new chip plants

Article Excerpt

INTEL CORP. $29 is a buy for long-term gains. The computer chipmaker (Nasdaq symbol INTC; Conservative Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares o/s: 4.1 billion; Market cap: $118.9 billion; Divd. yield: 1.7%; Divd. Sustainability Rating: Average; www.intel.com) cuts its quarterly dividend 65.8% in June 2023, to $0.125 a share from $0.365. The $0.50 new annual rate yields 1.7%. The reduced dividend payout should save Intel $4 billion annually at the same time it commits to spending more than $30 billion on new manufacturing plants. They will improve its technical expertise and expand its ability to make chips for other companies. The plan is starting to work. A new deal with U.K.-based chip designer Arm will see Intel make Arm’s chips for smartphones and other devices. The deal helps Intel better compete with chipmakers Samsung and Taiwan Semiconductor Manufacturing. Intel is a buy. buy…