Intel (INTC) cuts quarterly dividend payout by 65%
The company cut its dividend from 36.5 cents to 12.5 cents following weeks of previous compensation cuts.
Intel (INTC) recently shared details on how it has cut its quarterly dividend payout by more than 65 percent, dropping it from 36.5 cents down to 12.5 cents. As reported by outlets like CNBC, the move follows weeks of previously implemented, wide-ranging cost cuts at Intel.
On a recent call with analysts, Intel CEO Pat Gelsinger remarked that the board was “cautious in weighing the first dividend cut since 2000.” He later added that Intel intends to resume growing the dividend over time. “The board and I continue to view the dividend as a critical component to the overall attractiveness of Intel,” Gelsinger added, as quoted by CNBC.
Elsewhere on the call, Gelsinger noted that he and the board remain committed to maintaining a competitive yield. Currently, Intel’s dividend yield sits at 1.9 percent with CNBC pointing out that based on Tuesday’s closing price, this is “down significantly from its prior yield of 5.6 percent.”
As a result of the dividend cut, Intel (INTC) shares suffered a noticeable dip on Wednesday. Starting on June 1, the dividend will be payable, with Gelsinger stating in a press release that “prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine.”
Intel went on to point back to its prior guidance for Q1 2023 in which it guided to a 15 cent non-GAAP loss per share. Intel has yet to share full-year guidance due to economic uncertainty. For more on Intel, be sure to read through some of our previous coverage including Intel (INTC) Q4 2022 earnings results missing on EPS and revenue expectations, and Intel (INTC) guiding for a Q1 2023 loss and slashing its revenue forecast.
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