By Daniel Foelber, Scott Levine, and Lee Samaha - Jul 16, 2022 at 7:15AM
A high-yield blue chip dividend stock poised for a turnaround
Daniel Foelber (Intel): Intel stock has lacked luster in recent years. An absence of innovation caused the company to lose market share to Advanced Micro Devices and other competitors. In many ways, the stock deserved to fall. But looking ahead, buying shares now could make for an excellent turnaround play.
Intel made headlines in January when it announced a $20 billion investment in two chip factories in Ohio. However, it then announced in late June that its megaproject could be delayed based on the status of the CHIPS for America Act, a bill that is meant to bolster domestic chip production to create jobs and wean the U.S. off of chip imports.
Regardless of the timing of the project, the semiconductor industry has multidecade tailwinds. The growing need for domestic production is yet another green light for Intel to enter expansion mode.
With a price-to-earnings ratio of just 6.4 and a current dividend yield of 3.9%, Intel looks like a great source of passive income, while also providing upside potential if it can turn its business around.
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