Intel cuts quarterly dividend
Intel announced that its board of directors has reset its dividend policy, reducing the quarterly dividend on the company’s common stock to $0.125 per share (or $0.50 annually). The dividend will be payable on June 1 to stockholders of record on May 7, 2023. Intel also reiterated its outlook for the first quarter of 2023. In the first quarter of 2023, the revenue will be between $10.5 billion and $11.5 billion, the gross profit margin will fall to 34.1%, and the diluted loss per share will be $0.15.
Intel stated that the decision to reduce the dividend reflects the board’s careful consideration of capital allocation, and the purpose of this prudent attitude is to put the company in the best position to create long-term value. Increased financial flexibility will support the company in executing the critical investments it needs during these times of macroeconomic uncertainty. Intel’s dividends have returned more than $80 billion in cash to the company’s shareholders since the first dividend was paid in 1992, and the board is committed to maintaining a competitive dividend.
“Prudent allocation of our owners’ capital is important to enable our IDM 2.0 strategy and sustain our momentum as we rebuild our execution engine,” said Pat Gelsinger, CEO of Intel. “We remain on track to deliver five nodes in four years and continue to expand the IFS (Intel Foundry Services) customer base. We are well into the ramp of 13th Gen Intel® Core™ and 4th Gen Intel® Xeon® Scalable processors, and we look forward to the launch of Meteor Lake and Emerald Rapids in 2023 and Granite Rapids and Sierra Forest in 2024.”
According to Intel’s plan, expenditures need to be cut by $3 billion in 2023 and by $8 billion to $10 billion by the end of 2025. For this reason, Intel has implemented layoffs, reduced other operating expenses, and reduced the salaries of managers. Since the beginning of 2021, Intel has also withdrawn from 7 non-core businesses to highlight business priorities and improve its operating structure.
