Intel revenue forecast for 2015 is better than anticipated

Intel announced a financial outlook update and it's all good news for investors. The chip giant predicts revenue growth of mid-single digits for 2015, which is much better than the 3.4 percent consensus figure anticipated by financial analysts.

Other good news is that Intel is growing its dividend by 6 percent to 96 cents per share on an annual basis. Over the years, Intel has steadily increased its dividend. Lots of blue chip companies try to please investors with yearly dividend increases but in Intel's case the last dividend hike was 2.5 years ago.

At Intel Corporation's annual investor meeting today, the company announced that its board of directors has approved an increase in its cash dividend to 96 cents-per-share on an annual basis, a 6-cent increase, beginning with the dividend that will be declared in the first quarter of 2015. Intel also provided the 2015 business outlook.

"Today's dividend announcement reflects the board's confidence in Intel's strategy," said Intel Chairman Andy Bryant. "It also reflects the board's ongoing commitment to create value and return cash to Intel's stockholders."

At the investor meeting, Intel CEO Brian Krzanich emphasized that Intel's highest shareholder value will come from a strategy to utilize the core assets that drive the company's PC and data center businesses to move into profitable, complementary market segments. Intel's leading-edge manufacturing capability, Intel architecture, and the use of shared IP are key elements of the growth strategy.

Full-year 2015 Business Outlook

Revenue: Growth in the mid-single digits.

Gross margin percentage: 62 percent, plus or minus two points.

R&D plus MG&A spending: Spending as a percent of revenue is expected to be down with spending of approximately $20 billion, plus or minus $400 million.

Capital spending: Approximately $10.5 billion, plus or minus $500 million.

Dividend: 96 cents-per-share on an annual basis, a 6-cent increase year-over-year, beginning with the dividend that will be declared in the first quarter of 2015.