Faster-growing fields should spur their dividends

Article Excerpt

These two leading U.S. tech companies have aggressively shifted their focus to faster-growing areas as demand for their legacy products declines. That should fuel their longterm earnings and provide more cash for dividends. INTEL CORP. $45 (Nasdaq symbol INTC; Conservative Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.7 billion; Market cap: $211.5 billion; Dividend yield: 2.4%; Dividend Sustainability Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips: its products power 80% of all personal computers. With its June 1, 2017, payment, Intel raised its quarterly dividend 4.8%. Investors now receive $0.2725 a share, for an annual rate of $1.09. That yields 2.4%. To cut its reliance on cyclical demand for personal computers, Intel has diversified into other types of chips. The company completed its acquisition of Mobileye N.V. for $15.3 billion during the third quarter. Based in Israel, Mobileye specializes in computer systems and chips for selfdriving cars. Over 25 automakers currently use, or have agreed…