Very few people talk about Intel (INTC) these days but it’s still a great company and after a brutal beatdown the last two years the $110 billion chip maker presents a nice entry – especially for those seeking current income.
INTC is down ~60% since touching $64 in early April 2021 to a current $26.75. And the semiconductor market is under pressure. INTC is guiding 4Q22 revenue to $14-$15 billion – down 30% at the midpoint.
But INTC isn’t going anywhere. While they’re guiding 2022 EPS to $1.95 for a 14x multiple on current earnings, 2021 EPS was $5.47. In other words 14x is probably based on trough earnings or perhaps 2023 will represent the trough. But earnings will come back. There is value here.
In addition INTC pays a 36.5 cent quarterly dividend that works out to 5.46% annually. That’s juicy.
Conservative investors seeking value and current income might want to dip their toe in.