Daily Stock Analysis: Intel Corp

By Fredrik Arnold
Wednesday, August 10, 2022 4:00 AM EDT

Intel Corp with the ticker (INTC), is a large-cap semiconductor company operating, as I said, in the technology business sector. This is the third of five technology candidates competing for the forty-fifth slot in the Viital folio. It is my first ever report on INTC for my Viital portfolio though I have reported and selected it for previous portfolios.

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Intel is the world's largest logic chipmaker. It designs and manufactures microprocessors for the global personal computer and data center markets.

Intel pioneered the x86 architecture for microprocessors. It was the prime proponent of Moore's law for advances in semiconductor manufacturing, though the firm has recently faced manufacturing delays.

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 stagnated.

These include areas such as the Internet of Things, artificial intelligence, and automotive.

Intel has been active on the merger and acquisitions front, acquiring Altera, Mobileye, and Habana Labs in order to bolster these efforts in non-PC arenas.

The company serves original equipment manufacturers, original design manufacturers, and cloud service providers.

Intel Corporation has a strategic partnership with MILA to develop and apply advances in artificial intelligence methods for enhancing the search in the space of drugs.

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

Three key data points gauge any dividend equity or fund such as Intel Corp:

(1) Price

(2) Dividends

(3) Returns

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

INTC Price

Intel’s price per share was $34.52 as of yesterday's market close.  One year ago it’s price was $53.92. Thus, INTC share price fell $19.40 or about 36% in the past year.

If INTC stock trades in the range of $32.00 to $48.00 this next year, its recent $34.52 share price might rise by $5.48 to reach $40.00 by next year. My $5.48 upside estimate is $1.35 under the median of one-year price targets from 30 analysts tracking INTC for their brokers.

INTC Dividends

Intel’s most recently declared quarterly dividend of $0.37 is payable September 1st, to shareholders on record as of August 4th.

Since December 1, 1995, Intel has paid quarterly dividends increasing generally annually.  The current forward looking annual dividend of $1.48 equates to an annual yield of 4.29% as of yesterdays $34.52 share price.

INTC Returns

Adding the $1.48 Intel annual dividend to my estimated one-year price upside estimate of $5.48 shows a $6.96 potential gross gain, per share, to be reduced by any costs to trade INTC shares.

At yesterday's $34.52 closing price, a little over $1000 would buy 29 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.34 per share.

Subtract that maybe $0.34 brokerage cost from my estimated $6.96 gross gain estimate per share results in a net gain of $6.62 X 29

shares = $191.98, for a 19.2% net gain including a 4.29% forward looking annual dividend yield.

Over the next year our $1K investment in INTC shares should generate $42.90 in cash dividends. Of course, a single share of INTC stock bought at yesterday's $34.52 price is $8.38 LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this prime time to pick up Intel Corp shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is $8.38 MORE than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time to buy INTC.

All of the estimates above are speculation based on the past history of Intel Corp. Only time and money invested in this stock will determine its market value.

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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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