Intel Is Gutting Its Dividend. How Did It Fall So Far So Fast?
Intel (NASDAQ: INTC) recently revealed that it's resetting its dividend policy. The semiconductor giant is cutting its quarterly payout by 66% to $0.125 per share. That reduction ended years of steady growth for the dividend.
It's a stark reversal for a company asserting several times last year that it remained committed to paying a strong and growing dividend. However, with the macroeconomic environment deteriorating considerably since then, it was clear that Intel's dividend was in trouble.
The cracks started to form underneath Intel's financial foundation early last year. The company reported disappointing second-quarter results in late July, with revenue falling 22% to $15.3 billion and non-GAAP (generally accepted accounting principles) net income plunging 79%.
Source Fool.com
