Why Intel Belongs in Any Serious Investor's Portfolio

As an investment manager who has a slightly unhealthy obsession with dividends, I am surprised this year has had me desiring to own big cap tech stocks. Historically, big cap tech was where you went for safe, potential growth. To talk about owning companies like Microsoft (MSFT) because of their dividends didn't seem the natural way to get paid for investing and becoming an owner in a company through public stock.

I will now tackle another surprising name. This is a name everyone knows and most likely everyone uses. If you are reading this article, there is a greater than 80% chance that you are using this companies product.

The company is Intel (INTC). Intel has 80% of the microprocessor market and their products can be found in everything from computers and cell phones to garage door openers. Intel will spend more on the lifeblood of a good technology firm - research and development - than all of its competitors will make in profits. That stat alone means, barring a lucky break of a destructive new technology to the computer chip, Intel will continue to dominate the world for computer chips.

Now let's take a look at the buisness itself. The company just announced a near 15% pay raise for the owners of the business through a higher dividend. Coming into Friday's trading, the company was sporting a healthy 3% dividend yield. Starting Friday, that yield just rose to 3.45% roughly. Not only is this yield higher than the 10 years treasury bond that I make a requirement for a stock, but is darn near close to paying what a 30-year bond would pay. Some might make the argument that Intel has a better credit rating over the next 30 years, tongue-in-cheek.