Feeds

Intel juices cash dividend (again)

Take that, Apple shareholders. Or don't

Boost IT visibility and business value

Intel is rolling in cash, and like all mature companies, it pays a dividend to reward its shareholders and to help boost its share price in a positive feedback loop that, in turn, helps it make more money. Intel has so much cash – even after shelling out a fortune to invest in its future 22-nanometer chip fabs – that on Wednesday it raised its dividend for the third time in five months.

Starting in the third quarter, Intel will kick up its quarterly dividend payout to 21 cents a share, an increase of 16 per cent. The dividend jump in January of this year was only seven-tenths of a per cent, to just over 18 cents a share, and followed a 15 per cent increase announced by Intel's board in November 2010, up from 15.75 cents per share.

That January 2011 juicing of quarterly cash payments to shareholders also came with an authorization by Intel's board to spend up to $10bn on share buybacks to help it engineer earnings-per-share growth and to have some shares to distribute to executives and other deserving employees as compensation. Intel has authorizations outstanding for $14.2bn in buybacks at the moment; it burned $4bn on its own shares in the first quarter and said that since it started doing buybacks in 1990, it has taken back 3.6 billion of its own shares at a cost of $74bn.

Intel shelled out $3.5bn for dividends in 2010, and since it started paying dividends in 1992 it has spent about $22bn.

Intel has also committed $8bn to build out development and manufacturing fabs for its 22nm wafer-baking processes. The shift to 22nm includes a new 3D transistor technology called Tri-Gate, which promises to make gate switching much more efficient and allows for future Core, Xeon, and Itanium processors to run a lot cooler at a given level of performance.

"Worldwide demand for computing continues to increase at a very rapid rate, putting Intel on track for revenue growth of over 20 percent this year, delivering another record year for the company," Paul Otellini, Intel's president and CEO, said in a statement announcing the divvy increase.

"Intel's current and projected growth is generating strong cash flow," he said, "allowing us to further increase our dividend. We are delivering on our commitment to return cash to shareholders with annual dividend growth that's already more than five times the S&P 500."

IBM has been paying dividends since 1916 and has been increasing the payout on a regular basis to keep shareholders interested – just two weeks ago to 75 cents per share per quarter. Networking giant Cisco Systems has finally started paying a dividend, too, but at 6 cents per share, it's pretty skinny.

But thus far, Apple, which has some $66bn in the bank, has decided to just sit on it, as if the company were some kind of startup. Considering how Apple has recast itself in the past decade, you could argue that it is, and Steve Jobs no doubt would argue just that. Intel's main chip rival, Advanced Micro Devices, does not pay a dividend– although upstart rival ARM Holdings does. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.