Tuesday, March 21, 2023
Home » Intel slashes dividend by over 65%, to 12.5 cents

Intel slashes dividend by over 65%, to 12.5 cents

by admin

Intel lower its quarterly dividend by greater than 65%, from 36.5 cents to 12.5 cents, the chipmaker introduced Wednesday, weeks after the corporate applied a wide-ranging set of value cuts.

Intel CEO Pat Gelsinger stated on a name with analysts that the corporate’s board was cautious in weighing Intel’s first dividend lower since 2000. He added the corporate supposed to renew rising the dividend “over time.”

“The board and I proceed to view the dividend as a essential part to the general attractiveness of Intel,” he added.

Intel shares have been largely flat in premarket buying and selling Wednesday after the information.

Gelsinger insisted on the decision that each he and the board remained dedicated to sustaining a aggressive yield. Intel’s dividend yield is now 1.9%, primarily based on Tuesday’s closing value, down considerably from its prior yield of 5.6%.

The dividend shall be payable on June 1. “Prudent allocation of our house owners’ capital is necessary to allow our IDM 2.0 technique and maintain our momentum as we rebuild our execution engine,” Gelsinger stated in a press launch.

The corporate additionally reaffirmed its lately issued outlook for the primary quarter of 2023. Intel guided to a 15 cent non-GAAP loss per share however did not problem full-year steerage, citing financial uncertainty.

Intel’s most up-to-date outcomes, a top- and bottom-line miss and a $664 million internet loss for the fourth quarter of 2022, despatched its share value sharply down. “No phrases can painting or clarify the historic collapse of Intel,” Rosenblatt analyst Hans Mosesmann wrote after the earnings report.

Intel’s inventory has fallen almost 60% from its 2021 excessive, a mirrored image of each a difficult PC market and of company-specific points, together with a surplus of chips and underutilized factories.

The corporate stated it aimed to ship $3 billion in value financial savings this 12 months, partly by way of compensation cuts. Intel’s fourth-quarter loss was the chipmaker’s largest since 2017.

— CNBC’s Michael Bloom, Jordan Novet and Kif Leswing contributed to this report.

You may also like

US Report 247 is your one-stop website for the latest US and World news and updates, follow us now to get the news that maters.


Subscribe to our Newsletter for the latest news and updates. Let's stay updated!

Laest News

Copyright © 2023 – US Report 247. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy