For people who read this post for the first time: I am a private investor and live off dividends. I am not yet a millionaire but I still make money with dividend stocks over years. With my blog "long-term-investments.blogspot.com" I write down my trading activities and thoughts about dividend stocks. I learned a lot about investing and also made bad mistakes by investing money. You will never hear a buy or sell recommendation from me - that's my promise. I don't want to sell you something. The only think I like to do is to show you how I work and make money with dividend stocks.
The Intel Stock Trade
Yesterday I made a spontaneously buy of Intel (INTC) shares. The stock lost yesterday at peak times over 4 percent and closed at $19.51. The trigger news was a downgrade rating by the Swiss bank UBS. Intel was downgraded from buy to neutral. The new target price is $21.50 (before $29).
I bought 100 shares at $19.39. The total value of $1,939 is not significant for my net worth. I often buy little positions of companies in order to observe them. If the business don't weaken and market prices are still attractive, I like to increase my position to a normal level of up to 1.5 percent of my full portfolio. I believe that the stock will fall again. At the current level, Intel is at multi-annual year lows. Due to the economic environment, I believe that the sell-off should go on.
It is my first buy of Intel shares. I never had shares from the company before and I regret not to bought them in 2008/2009 when the company had a quarter dividend yield of 0.91 percent. Today, the quarter yield amounts to 1.15 percent. Intel has a net cash position and is traded at an EV/EBITDA ratio of around 4!
The stock is also in our virtual Dividend Yield Portfolio which is funded with 100,000 dollar and will be released within the next months. Within this portfolio, Intel is now one of the worst performing stock holdings (8.7 percent unrealized losses).
Dividend Income orientated Blog. Ideas and Thoughts about Stocks, Dividends and Growth Opportunities.
Showing posts with label Intel. Show all posts
Showing posts with label Intel. Show all posts
Dividend Idea Of The Week: Intel (NYSE:INTC) Offers A Yield Of 4.23% At 26.94% Upside Potential
Weekly Dividend Stock Ideas Researched by The Dividend Yield Weekly. Our weekly Dividend Idea is the leading technology and semiconductor company Intel Corporation (NYSE:INTC). Intel Corporation designs and manufactures integrated digital technology platforms. A platform consists of a microprocessor and chipset. The Company sells these platforms primarily to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and industrial and communications equipment manufacturers in the computing and communications industries. The Company’s platforms are used in a range of applications, such as personal computers (PCs) (including Ultrabook systems), data centers, tablets, smartphones, automobiles, automated factory systems and medical devices. On February 2012, QLogic Corp. sold the product lines and certain assets associated with its InfiniBand business to the Company. In May 2012, Cray Inc. completed the sale of its interconnect hardware development program and related intellectual property to the Company. In September 2012, InterDigital, Inc.’s subsidiaries sold around 1,700 patents and patent applications to the Company. More on Reuters here.
We like the company due to the high market share within the semiconductor industry (The biggest rival is Texas Instruments with a market capitalization of $32 billion, one third from the valuation of Intel). The stock is a basic investment for technology investors with one of the most attractive dividend yields within the sector. The company is acting in a very cyclic industry but has a beta ratio of only 1.06. Despite the fact that the company is near one-year lows, we believe that the sell-off could go on due to recession items. Another big burden is the low market share in the very fast growing Smartphone market. Intel raised dividends for 9 consecutive years (Dividend Challenger) and has a long-term dividend growth rate over 25 percent. The company serves $10.5 billion on cash and short-term investments at $7.2 billion debt. The strong operating cash flow (EBITDA of $23.2 billion) leads to an investment payback of 4.4 years.
We like the company due to the high market share within the semiconductor industry (The biggest rival is Texas Instruments with a market capitalization of $32 billion, one third from the valuation of Intel). The stock is a basic investment for technology investors with one of the most attractive dividend yields within the sector. The company is acting in a very cyclic industry but has a beta ratio of only 1.06. Despite the fact that the company is near one-year lows, we believe that the sell-off could go on due to recession items. Another big burden is the low market share in the very fast growing Smartphone market. Intel raised dividends for 9 consecutive years (Dividend Challenger) and has a long-term dividend growth rate over 25 percent. The company serves $10.5 billion on cash and short-term investments at $7.2 billion debt. The strong operating cash flow (EBITDA of $23.2 billion) leads to an investment payback of 4.4 years.
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