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Intel Lifts Dividend By 7.1% In Third Increase In 18 Months

DOW JONES NEWSWIRES Intel Corp.'s (INTC) board approved a 7.1% quarterly dividend increase, allowing the technology company to boost its payout to shareholders for the third time in less than two years. The company will now pay shareholders 22.5 cents a share a quarter, up from the 21 cents previously paid. The increase will cost the company roughly an additional $78 million a quarter. "This latest dividend increase is one more example of our commitment to return cash to our stockholders as we continue to generate strong cash flow fueled by the global growth of computing," said Chief Executive Paul Otellini. The new payout puts the company's annual dividend yield at 3.22%, above the likes of fellow tech titans International Business Machines Corp. (IBM) and Microsoft Corp. (MSFT). Intel, considered a bellwether for the broader industry because its chips run more than 80% of the world's PCs, posted record results in 2011 despite worries about demand. Shares were recently off two cents at $27.88 shortly after the market open in New York. -By Mia Lamar, Dow Jones Newswires; 212-416-3207;

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