Intel announced that it's reducing its quarterly dividend to investors by nearly two-thirds as it seeks to conserve cash amid the uncertain economic environment.
Intel will slash the quarterly payout to 12.5 cents from 36.5 cents a share, starting with the next payout to stockholders on June 1.
Intel's dividend has been at 36.5 cents a share for many quarters. The new payment reduces it to a level not seen since at least 2007.
- The chip maker said the move offers it "improved financial flexibility" to bolster the investments required to undergo a "transformation" during economic uncertainty.
- Based on Tuesday's closing share price, Intel’s dividend yield is around 1.9%. Its shares have lost 42% in the past year.
- Intel paid out $6B in dividends in 2022. It has doled out an estimated $80B to investors since 1992.
In addition to cutting its dividend, Intel's board members have temporarily lowered their own compensation to further cut costs.
- Intel reported a net loss of $664M in Q4 2022 as it copes with increased competition and an ongoing slump in PC sales. The U.S. semiconductor giant expects to face another shortfall this quarter.
