I’m becoming a broken record. The market continues to set
all-time highs with no significant pullback. In my opinion, the S&P 500
monthly chart is very much extended and should have a downturn. However, like
all shopping centers across America, you can still find items on sale in the back
of the store. Today’s post will talk about Intel Corp (INTC), which looks
undervalued and presents a good buying opportunity in this overvalued market.
Intel Corp. (INTC) is an American multinational and
technology company headquartered in Santa Clara, California, in Silicon Valley.
It is the world’s largest semiconductor chip manufacturer by revenue and is the
developer of the x86 series of microprocessors, the processors found in most
personal computers (PCs) and servers. The Company produces other technology
products such as microprocessors for a computer system manufactured by Lenovo,
HP, and Dell. Intel also manufactures motherboard chipsets, network interface
controllers and integrated circuits, flash memory, graphics chips, embedded
processors, and other devices related to communications and computing. Total
revenue was $77,867 million in 2020 and $77,615 million in the LTM.
Intel is up only 7.8% year to date. So, while most stocks
have been only going up this year, Intel has lagged. However, I think it has
room for upside potential. The Company is now dealing with a significant
failure to its 10 nm process technology. The Company has been dealing with this
issue, while Advanced Micro Devices, Inc. (AMD) capitalizes on Intel’s poor
management and planning. However, this failure is what creates an opportunity
for investors.
We will now look at Intel’s dividend history, dividend
growth, and dividend yield. We will then determine if it’s a good buy at the
current price.
Intel has been growing its dividend for seven consecutive
years making the stock a Dividend Challenger. However, in 2014, the Company
froze its dividend. Before 2014, Intel raised its dividend for ten straight
years. Thus, Intel has been a dividend-paying stock since 1992.
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