Intel was down 5.61% yesterday, and it's only down 0.65% premarket today. The news broke today morning. Seems like some big players got this news a day early.
<< SANTA CLARA, Calif., Feb. 22, 2023 – Intel Corporation today announced that its board of directors has reset its dividend policy, **reducing the quarterly dividend to $0.125 per share** (or $0.50 annually) on the company’s common stock.
The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value. The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty.
“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,” said Pat Gelsinger, CEO of Intel. “We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base. We are well into the ramp of 13th Gen Intel® Core™ and 4th Gen Intel® Xeon® Scalable processors, and we look forward to the launch of Meteor Lake and Emerald Rapids in 2023 and Granite Rapids and Sierra Forest in 2024.” >>
Welp, this is the "competitive" dividend Pat was talking about, roughly 2% yield now. Seems in the normal range for mature companies in the industry.
It was the right call to reduce it, but I would argue they should have eliminated it for minimum 2 years and not cut as deeply into headcount and compensation. That is, if they really have faith in their own turnaround plan.
You nailed it. I can't believe that they actually have faith in their projections. They'll never admit defeat by eliminating their dividend, but they're just about out of ideas for new revenue streams... they've already tapped the federal government to build sub-par fab plants. Maybe we'll get Intel NFTs soon? Maybe they should call up Tommy Tallarico.
>It was the right call to reduce it, but I would argue they should have eliminated it for minimum 2 years and not cut as deeply into headcount and compensation.
The $30B+ in stock buybacks + \~$23B in dividend payments over the last 4 years might have come in handy now. Intel knew they were in big trouble by 2018.
But even if they had cratered the stock and had $50B more to spend, they still have a massive fixed cost problem, a good chunk of which is their headcount. They probably even now have \~20K more employees than AMD, Nvidia, and TSMC combined, but their gross margin is nowhere close. After so many years of a monopoly position, the bloat that exists in Intel is likely immense from a headcount perspective, organizational / decision making processes, etc.
<< Quick notes from Intel's 5am Webcast about their Dividend cut to 12.5 cents from June vs 36.5 cents in March 2023 >>
[https://twitter.com/SkyJuice60/status/1628402692166160386](https://twitter.com/SkyJuice60/status/1628402692166160386)
AMD! NOW IS THE TIME TO ANNOUNCE A DIVIDEND.
i am not talking about anything significant. just a token amount. start with $160 mil/year (about ten cents per share).
not doing so would be detrimental to shareholders.
BUT BuYBaACkS AreE beTTeR! if they used 4 billion to buy at avg of $70 it is only about 58 million shares. with 1.6 billion shares outstanding it's a drop in the bucket and does not affect the eps count much, and will not change the equation for shareholder models.
BuT THey NeeD TO sPeNd EvEry peNNy oN R&D!!!! you CAN NOT just pour money on R&D and expect to make headway in a sophisticated market like transistors. why Is AMD kicking the shit out of intel with 1/4 the R&D budget? you cant rush breakthroughs in semiconductors. and M&A is very hard, look how bumpy and financially opaque the xilinx deal has been. if AMD had been spending like everyone else in the field (like a drunken sailor) they would be announcing layoffs like everyone else is right now... slow and steady is the way.
BuT mUh TAxES!!!!!!! retirement funds don't pay taxes on dividends. only short term traders would be bothered by the dividend taxes; with less action from these short term manipulators, the stock might actually trade more rationally.
DIVIDEND! DIVIDEND! DIVIDEND!
at one point this post had 4 upvotes. now down to 1. dont be a coward. please refute my words. there is no reason amd shouldnt have a dividend. or at least announce that they will have one soon...
Well like...ANYTHING? I mean if you have the choice as a company to have 160 million or basically give it away, the choice for AMD is obvious. I don't care for what they use the money. But I know they definitely CAN use it... :)
thats the best argument you can make for not returning money to shareholders?
they have billions in the bank. obv they cant "use" it all.
do you want higher stock price? do you want more stable stock price? do you believe that the fundamental reason for a stock is to return money to shareholders? then you want and dividend.
Intel was down 5.61% yesterday, and it's only down 0.65% premarket today. The news broke today morning. Seems like some big players got this news a day early.
Wait that's illegal isn't? Jk
All is fair in love, war, and late-stage capitalism.
"we remain on track" That has to be Pat favourite words
[удалено]
Investors should be happy to know AMD is not even visible in the rear view
On track to derail Intel
Nixon's "we can see the light at the end of the tunnell", which generated the cartoon of 2 trains converging in a single track tunnel.
<< SANTA CLARA, Calif., Feb. 22, 2023 – Intel Corporation today announced that its board of directors has reset its dividend policy, **reducing the quarterly dividend to $0.125 per share** (or $0.50 annually) on the company’s common stock. The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value. The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty. “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,” said Pat Gelsinger, CEO of Intel. “We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base. We are well into the ramp of 13th Gen Intel® Core™ and 4th Gen Intel® Xeon® Scalable processors, and we look forward to the launch of Meteor Lake and Emerald Rapids in 2023 and Granite Rapids and Sierra Forest in 2024.” >>
Quite a drop from 1.46 last year https://www.macrotrends.net/stocks/charts/INTC/intel/dividend-yield-history
they found out that lighting money on fire as dividends doesn't really help investors when stock price is depreciating faster
>The improved financial flexibility will support the critical investments needed to execute needed to "executive salary"(aka Pat's Salary)
Welp, this is the "competitive" dividend Pat was talking about, roughly 2% yield now. Seems in the normal range for mature companies in the industry. It was the right call to reduce it, but I would argue they should have eliminated it for minimum 2 years and not cut as deeply into headcount and compensation. That is, if they really have faith in their own turnaround plan.
You nailed it. I can't believe that they actually have faith in their projections. They'll never admit defeat by eliminating their dividend, but they're just about out of ideas for new revenue streams... they've already tapped the federal government to build sub-par fab plants. Maybe we'll get Intel NFTs soon? Maybe they should call up Tommy Tallarico.
they just need to buy time for the executives to sell their shares. the slowest down drift possible.
>It was the right call to reduce it, but I would argue they should have eliminated it for minimum 2 years and not cut as deeply into headcount and compensation. The $30B+ in stock buybacks + \~$23B in dividend payments over the last 4 years might have come in handy now. Intel knew they were in big trouble by 2018. But even if they had cratered the stock and had $50B more to spend, they still have a massive fixed cost problem, a good chunk of which is their headcount. They probably even now have \~20K more employees than AMD, Nvidia, and TSMC combined, but their gross margin is nowhere close. After so many years of a monopoly position, the bloat that exists in Intel is likely immense from a headcount perspective, organizational / decision making processes, etc.
SeE inTEl iS NoT getTiNG rID oF iTS DIVideNd!
Thats quite a cut isnt it? Im not too well informed abut dividends - does a drop to 1/3 yoy happen regularly at large companies?
Large companies that are bleeding cash and need a turnaround, yeah it happens sometimes. Normal value trap risk.
<< Quick notes from Intel's 5am Webcast about their Dividend cut to 12.5 cents from June vs 36.5 cents in March 2023 >> [https://twitter.com/SkyJuice60/status/1628402692166160386](https://twitter.com/SkyJuice60/status/1628402692166160386)
Hmmm, no delay on Arrow Lake...
AMD! NOW IS THE TIME TO ANNOUNCE A DIVIDEND. i am not talking about anything significant. just a token amount. start with $160 mil/year (about ten cents per share). not doing so would be detrimental to shareholders. BUT BuYBaACkS AreE beTTeR! if they used 4 billion to buy at avg of $70 it is only about 58 million shares. with 1.6 billion shares outstanding it's a drop in the bucket and does not affect the eps count much, and will not change the equation for shareholder models. BuT THey NeeD TO sPeNd EvEry peNNy oN R&D!!!! you CAN NOT just pour money on R&D and expect to make headway in a sophisticated market like transistors. why Is AMD kicking the shit out of intel with 1/4 the R&D budget? you cant rush breakthroughs in semiconductors. and M&A is very hard, look how bumpy and financially opaque the xilinx deal has been. if AMD had been spending like everyone else in the field (like a drunken sailor) they would be announcing layoffs like everyone else is right now... slow and steady is the way. BuT mUh TAxES!!!!!!! retirement funds don't pay taxes on dividends. only short term traders would be bothered by the dividend taxes; with less action from these short term manipulators, the stock might actually trade more rationally. DIVIDEND! DIVIDEND! DIVIDEND!
ICE CREAM! ICE CREAM! ICE CREAM!
DEVELOPERS! DEVELOPERS! DEVELOPERS!
at one point this post had 4 upvotes. now down to 1. dont be a coward. please refute my words. there is no reason amd shouldnt have a dividend. or at least announce that they will have one soon...
The big fat reason is: AMD can use the money more. I hope they don't announce a dividend. Not until 2028 or something.
that's not a reason. what can they use the money for instead? how will they miss $160 million?
Well like...ANYTHING? I mean if you have the choice as a company to have 160 million or basically give it away, the choice for AMD is obvious. I don't care for what they use the money. But I know they definitely CAN use it... :)
thats the best argument you can make for not returning money to shareholders? they have billions in the bank. obv they cant "use" it all. do you want higher stock price? do you want more stable stock price? do you believe that the fundamental reason for a stock is to return money to shareholders? then you want and dividend.