Intel Boosts Dividend; Announces New Memory Technology

  The board of directors of Intel Corp. (NASDAQ: INTC – $35.16) has declared a quarterly dividend of $0.2725 per share or $1.09 on an annual basis, a five percent increase. The dividend, yielding 3.1%, will be payable on June 1, 2017, to stockholders of record on May 7, 2017.

       The Santa Clara-based company also said it is starting to ship the first products based on new technology it hopes will reshape the market for computer memory and help it profit more from the tech world’s data explosion. The new storage drives, which Intel is making widely available today, are based on technology called 3D XPoint. The company bills the technology, pronounced “three-dee cross point”, which it says it spent more than a decade developing as a new memory category, bridges the gap between speedy conventional memory where computers hold data for immediate use and the flash memory used for longer-term storage. Intel claims the raw 3D XPoint technology is 1,000 times faster than the NAND flash commonly used in storage drives, though still about 10% the speed of temporary dynamic random-access memory or DRAM.

       I believe income choice Intel is valued attractively at current levels and fundamentals will improve through late decade, despite periods of unevenness. An aging PC landscape ripe for replacements and new innovative devices supporting enterprise purchases should serve the company well. Higher investments in cloud computing will drive data center growth and significant opportunities within the internet of things and advanced memory systems also augurs well for Intel in the years to come.

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