These tech leaders offer sustainable payouts

Article Excerpt

Computer-chip makers Intel and Texas Instruments face two main risks. First, demand for their products rises and falls with the overall economy. As well, the fast pace of technological change continually threatens the appeal of their chips. However, their high market share and commitment to research should continue to fuel growth—and dividends. INTEL CORP. $36 (Nasdaq symbol INTC; Conservative Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.7 billion; Market cap: $169.2 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.intel.com) is the world’s leading chip maker. Its products power 80% of all personal computers. Intel has paid dividends since 1992. It last increased its quarterly dividend in March 2016 by 8.3%, to $0.26 a share from $0.24. The annual rate of $1.04 yields 2.9%. The company recently announced that it will open a new chipmaking plant in Arizona. This facility was completed in 2014, but operations were delayed by weak demand for personal-computer chips. Intel plans to re-tool this…