Improving outlook prompts dividend hike

Article Excerpt

INTEL CORP. $37 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.9 billion; Market cap: $181.3 billion; Price-to-sales ratio: 3.4; Dividend yield: 2.6%; TSINetwork Rating: Above Average; www.intel.com) expects its revenue to rise by about 5% in 2015, compared to the consensus forecast of a 3.4% increase. That’s because businesses are replacing their older computers more quickly than expected. Intel only recently started making chips for mobile devices, so it offered manufacturers special discounts to encourage them to switch over. However, it expects to cut these subsidies, as it will soon launch a new mobile chip that combines a processor with a wireless modem. That cuts the need for two separate chips. The company has also raised its dividend by 6.7%. The new annual rate of $0.96 a share yields 2.6%. Intel is a buy. buy. …