I'm Passing on Intel Because IBM and Texas Instruments Are Better
I'm a dividend investor, so an out-of-favor stock like Intel (NASDAQ: INTC), with its historically high yield, is something I'm going to take a look at. The company has some attractive features.
But a deeper dive suggests the risks outweigh the benefits, especially when I compare the chip giant to my investments in International Business Machines (NYSE: IBM) and Texas Instruments (NASDAQ: TXN). Here are two big reasons why I'm taking a pass on Intel.
The big thing that attracted me to Intel was the stock's current 5.4% dividend yield. That's not only large on an absolute level, but it's also near the highest levels in the company's history, suggesting the stock is relatively cheap today. That combination is easily enough to get me to take a closer look at Intel right now. One warning sign for me here, however, is that the dividend hasn't been increased annually for even 10 consecutive years.
Source Fool.com
