Key Takeaways:
- Intel offers a 2.0% dividend yield today.
- Analysts expect Intel’s earnings to start to recover over the next 2 years.
- However, Intel still has no economic moat and will need to execute its turnaround flawlessly to right the ship.
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
Intel’s stock is down nearly 70% in the past 5 years because the company has fallen far behind its competitors like AMD in CPUs and hasn’t kept up with Nvidia in AI chips.
At the same time, Intel is spending heavily to build out its foundry business, which is weighing on profits without delivering much growth yet. This is a long-term bet that will take years to play out.
Add in soft demand for PCs, and investors aren’t seeing a clear path to a rebound for the company.
Analysts Think Intel Has 17% Upside Today
Analysts do think Intel has upside today, but the stock is still risky for long-term investors.
Morningstar analysts say that the stock doesn’t have an economic moat. With no moat, it’s unlikely the business will sustainably see high returns on capital:
If the business isn’t able to compete and earn profits, it will be difficult for the company to offer a strong long-term dividend.
1: Dividend Yield
Intel currently offers around a 2% dividend yield.
The stock used to offer as high as a 5.9% dividend cut before management made the right decision to cut the dividend.
The stock has a low dividend payout ratio today, which means a low portion of the company’s earnings are being paid out to shareholders.
Still, it’s unlikely that the stock will see dividend growth any time soon.
Find high-yield dividend stocks that are better than Intel. (It’s free) >>>
2: Dividend Safety
Intel is still paying its dividend, but the situation feels a little shaky.
The company is spending heavily to modernize its operations, and its profits haven’t exactly been stable.
Analysts expect normalized earnings to rebound to near 2023’s levels in 2026, and some analysts speculate that earnings will continue to recover through 2029.
See Intel’s full growth forecast. (It’s free) >>>
3: Dividend Growth Potential
Intel hasn’t made any recent moves to raise its dividend, and honestly, that’s not surprising.
Most of its focus is tied up in turning the business around and getting growth back on track.
Until earnings improve and the company is in a more comfortable spot financially, it’s hard to see dividend growth happening anytime soon.
For now, investors should be prepared for the stock to have a long recovery period.
TIKR Takeaway
Intel still has a long road ahead in catching up to competitors in AI and chip manufacturing, but its 2% dividend yield and push into foundry services could appeal to investors who think the stock has turnaround potential.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
