Intel Increases Dividend by 15%
The dividend amounts to 72 cents per share on an annual basis, beginning with dividend paid for the first quarter of 2011. The previous quarterly dividend was 15.75 cents a share.
"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said President and CEO Paul Otellini. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."
Intel's results last month boosted investors' confidence in the technology sector and its prospects, but that confidence was shaken earlier this week when Cisco Systems (CSCO) results revealed severe slowdowns in spending by governments, and the world's No. 1 maker of computer networking equipment offered a gloomy outlook. Intel's dividend hike announcement should provide a counterpoint to some of that gloom -- or at least remind investors that Intel's nothing like Cisco.
Intel's shares were up more than 2% in mid-morning trading.