Intel Slashes Dividend in Capital-Allocation Reset
February 22 2023 - 08:20AM
Dow Jones News
By Colin Kellaher
Intel Corp. on Wednesday said it is slashing its dividend by
about two-thirds, as the chip maker resets its capital-allocation
strategy amid economic uncertainty.
The Santa Clara, Calif., company said it is reducing its
quarterly dividend by nearly 66%, to 12.5 cents, from 36.5
cents.
The new payout, equal to 50 cents a year, represents an annual
yield of about 1.92% based on Tuesday's closing price of $26.06,
down from 5.6%.
Intel, which last month reported a fourth-quarter loss amid a
souring market for its chips and growing competition from rivals,
said the dividend cut would provide improved financial flexibility
to critical investments during a period of macroeconomic
uncertainty.
The company shelled out $6 billion in dividends last year.
Intel said the reduced dividend is payable June 1 to
stockholders of record May 7.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 22, 2023 08:05 ET (13:05 GMT)
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