Chip giant Intel announced it's increasing its dividend to 26 cents per quarter, starting with the dividend payout to be declared in the first quarter of 2016. The 8.33% increase reflects Intel's healthy financials and the company's commitment to return cash to shareholders.
The 2016 business outlook was also updated, Intel expects to see mid-single digits revenue growth in the coming year and targets capital expenditures (capex) of $10 billion, plus or minus $500 million.
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 $1.04 per-share on an annual basis, an eight-cent increase, beginning with the dividend that will be declared in the first quarter of 2016. Intel also provided the 2016 Business Outlook.
"Our financials show that Intel's transformation is underway, and we're forecasting growth for 2016," said Stacy Smith, Intel CFO. "The 2016 dividend increase reflects confidence in the strategy and Intel's ongoing commitment to create value and return cash to shareholders."
At today's investor meeting, Intel CEO Brian Krzanich addressed Intel's strategy to utilize the company's core assets to move into profitable, complementary market segments. He described Intel's Client Computing business as a strong foundation, which delivers healthy profits and critical intellectual property to the rest of Intel. The Data Center, Internet of Things and Memory businesses are expected to be growth engines for the company.
Full-year 2016 Business Outlook
Intel's Business Outlook reflects the impact of a 53 week fiscal 2016.
Revenue: Growth in the mid-single digits.
Gross margin percentage: 62 percent, plus or minus a couple points.
R&D plus MG&A spending: Spending as a percent of revenue is expected to be down half a point.
Capital spending: $10 billion, plus or minus $500 million (includes approximately $1.5 billion for Memory).
Dividend: $1.04 per-share on an annual basis, an eight-cent increase year-over-year, beginning with the dividend that will be declared in the first quarter of 2016.
Supplemental outlook and other information will be provided during today's investor meeting. For the live webcast and presentation materials, visit www.intc.com.