Intel Corporation just slashed its dividend by 66%.
It was the first dividend cut since the company began paying one 31 years ago.
Studies show that dividend cutters historically underperform and have higher volatility to boot.
When the dividend is cut, it’s time to sell.
Intel just confirmed its fundamentals are the worst in at least 31 years.
Intel’s new lower dividend will cost it $6.3 billion over the next three years and require $12 billion in new debt.
Its interest costs will soar by at least 140%.
If we get into a recession, Intel could suspend the dividend entirely.
Intel offers 7.7% long-term return potential, while these 2 rivals are thriving hyper-growth chip stocks with excellent management, wide moats, and efficient R&D.
They offer 19% to 26% long-term return potential, 2.5X to 3.5X more than Intel.
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