Daily Stock Pick: Intel

A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fifth of five technology stocks striving to join my Volio folio. This could be my twenty-fourth pick for Volio!

That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.

My subject today is a large-cap semiconductors fabricator named, Intel Corp. Their trading ticker symbol is INTC. This is my first report about Intel Corp.

Intel Corp is one of the world's largest chipmakers. It designs and manufactures microprocessors for the global personal computer and data center markets. Intel pioneered the x86 architecture for microprocessors.

It is also the prime proponent of Moore's law for advances in semiconductor manufacturing. While Intel's server processor business has benefited from the shift to the cloud, the firm has also been expanding into new adjacencies as the personal computer market has declined. These include areas such as the Internet of Things, memory, artificial intelligence, and automotive.

Intel has been active on the merger and acquisitions front, recently acquiring Altera, Mobileye, Nervana, Movidius, and Habana Labs in order to assist its efforts in non-PC arenas.

It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers.

The company was founded in 1968 and is headquartered in Santa Clara, California.

I use three key data points to gauge dividend equities or funds like Intel Corp:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

INTC Price

Intel's price per share closed at $67.60 yesterday. A year ago its price was $50.81. Thus, in the past year, its market price went up  $16.79, or just over 33%.

Assuming Intel's stock trades in the range of $45 to $75 this next year, its recent $67.60 price could rise by $4.40 to reach $72.00  by February 14, 2021, assuming upward price momentum continues.

INTC Dividends

Intel's latest declared quarterly dividend was $0.33 payable March 1. That $0.33 Q dividend equates to an annual payout of $1.32 and yields 1.95% at yesterday's $67.60 share price.

INTC Gains?

Adding the $1.32 annual estimated dividend to my $4.40 estimate of Intel Corp price upside shows a $5.72 potential gross gain, per share, which will be reduced by any costs to trade those shares.

Say we put a little over $1,000.00 today in Intel Corp at its recent $67.60 price, would buy 15 shares of INTC.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.67 per share.

Subtract that $0.67 brokerage cost from the estimated $5.72 gross estimated gain per share leaves a net gain of $5.05 X 15 shares = $75.75 or a 7.5% net gain on a $1,014.00 investment.

Therefore, Intel Corp, whose trading ticker symbol is INTC shows a possible 7.5% net gain including a 1.95% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Intel Corp, is worth your time and money.

 

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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