In all honesty, this stock is not the most exciting. It won’t guarantee you profits in triple-digit percentages. This stock has had its glory days and is now just making its way out of rough times.
But despite these turbulent times, its financials have looked somewhat stable, and its dividend yield makes a compelling case. So, if you’re in for dividends and potential upsides, we present you Intel Corporation (Nasdaq: INTC)
Source: Pok Rie
Intel Corp is one of the most popular processor chip makers around. Its processors are in most personal computers. That means it has the likes of Dell, Hewlett Packard, Lenovo, Acer, and Asus in its customer books. In addition to processor chips, Intel also manufactures chips for various purposes in any computer system.
Intel Corp was the undisputed champion for a long time as far as processor chips were concerned. Then formidable competitors, such as AMD, reared their heads. As a result, Intel lost some customers to these competitors, especially in the space of chipsets for specialized purposes, such as gaming.
However, Intel hired a new CEO, Patrick P. Gelsinger, a little over a year ago, and things have started looking up. The seeming “brain drain” appropriated to the company by many blogs, review sites, and publications has begun to wane. One of the most prominent hardware publications, Tom’s Hardware, had this to say about one of Intel’s upcoming processors, Alder Lake: “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.”
Also, insider optimism about the stock has been growing, as they bought about $745,000 worth of Intel shares in the last quarter. If insiders, who may (or may not) have insider information on the stock, are spending so much accumulating it, there may be some future for it.
Another compelling case the Intel stock makes is its 3% dividend yield. And with a payout ratio of just 28%, you can be sure it is hard at work trying to rebuild the company. Also, a price-to-earnings ratio of 9.8X, which trails its industry by over 12.1X, is a good sign for value investors.
Technical Analysis
INTC stock has formed a consolidation with a lower boundary at the $40.5 – $43.5 support level.
Despite being in a range, the Intel stock is still on a more extensive bullish run, according to the bullish trendline that formed underneath the stock price.
It will be interesting to see how the stock performs from here. But for now, it looks headed for the $56.2 – $59 resistance level. If it breaks this level and continues to break the next $67.9 – $70 resistance level, that would be a strong bullish signal for the stock.
For now, though, we recommend you buy the stock for short-term gain and hold it for its dividend.
