Feeds

Intel juices cash dividend (again)

Take that, Apple shareholders. Or don't

Intelligent flash storage arrays

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.