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Intel In The Garden Portfolio

Jul. 06, 2017 11:37 AM ETIntel Corporation (INTC)JNJ, MSFT, O, T, TGT, AMD2 Comments
DJ Habig profile picture
DJ Habig


  • I take a closer look at Intel in terms of my Garden Portfolio.
  • The dividend yield and growth are essential metrics for me.
  • Using other data, I've developed a reasonable trajectory for future dividend payments.

As I've written about, most recently in Tending the Dividend Garden – June Update, I like to group my stocks into several categories that I relate to crops from my garden. I believe this is an apt analogy because investing and gardening both require similar traits like planning and patience. My groups are defined solely by a stock's dividend yield and dividend growth rate (DGR). The examples of my crop categories are Microsoft (MSFT) for apple tree, Target (TGT) for strawberry, Johnson & Johnson (JNJ) for green bean, AT&T (T) for watermelon, and Realty Income (O) for spinach. These two metrics are by no means the only criteria I measure a stock by when performing my due diligence, but organizing my stocks based on their dividends helps to keep me balanced between the high-yielding, low DGR stocks and the low-yielding, high DGR stocks. In this article, I will explore the dividend of Intel (NASDAQ:INTC) a bit deeper and evaluate valuation in terms of the dividend. I’ll also analyze future prospects and explain why I believe dividend growth will continue in the high single digits over the next several years, even as earnings concerns arise.

INTC is what I call a green bean stock in my Garden Portfolio. When I plant green beans in my garden, I know I can expect moderate harvests on a consistent basis. They are the most reliable crop I grow, even if they never exceed my expectations. For this reason, I label an investment a green bean with a yield between 2.5% and 4% with 1 to 10 year DGRs ranging from 5% to 10%. INTC has a current yield of 3.13%. Due to a dividend freeze from 2013 to 2014, INTC is not a member of David Fish’s CCC list. As an owner of the stock, that freeze put INTC into an odd position in my portfolio. By not cutting

This article was written by

DJ Habig profile picture
Just a scientist who appreciates passive income and the power of compounding.

Analyst’s Disclosure: I am/we are long T, TGT, JNJ, MSFT, O, INTC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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