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Intel Corporation Message Board

  • investcarefully investcarefully Feb 5, 2009 11:10 AM Flag

    Why Intel should increase the dividend further

    It's time to increase the dividend and reward stock holders.

    For years Intel has justified their investment in R%D and compensation structure out of fear of competition and to win market share. The market is now offering the opportunity to further cut salaries and R&D spending.

    Clearly times have changed- it's time to take advantage of our market position and reward stock holders who have endured years of declining company value.

    Employees posting to this board are understandably offended by this suggestion- they think it's still 1999. Let Intel's 70,000 plus employees test the market- they will find that the demand for their skills has declined- it's basic supply and demand- the market ebbs and flows. It is alarming how few people understand basic capitalism and feel entitled to their high paying jobs.

    I am simply a stock holder seeking a return. Everyone (including employees) will benefit as the stock price increases.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I wish intel had never given any dividend to begin with. I also wish they had not done any buy backs of shares during the idiotic Bush years. Bloody now is the time to buy back , now that the crisis is full on and the stock price is ridiculous and a true visionary leader is in the white house and wants to do something about this country (but of course where is the cash now, only precious fraction of it is left and you want them to give it out to us lol!!!). The past 8 years they have wasted money like there was no tomorrow! They have indeed wasted 20-30 bil over bs ideas! They essentially have today about the same cash reserves they had in 2000!!! If they had kept all that wasted money the stock price today would be at 20+ purely on book value logic.

      I cannot begin to express how pi$$ed off i am at management for having the stupidity to take so much cash and use it so terribly, practically wasting it. If intel had decided to take all its cash and build homes and sell them at a profit of 30% per home or rent them instead , just to give you a stupid funny sounding for a high tech company idea, they would have been able to turn every year some extra 1-2 bil earnings just by the cash they were using in secure ideas like this funny one above!

      I cannot begin to express how unbelievably irritated i am that some company that has so much cash thinks that the best thing it can do with it instead of all the hundreds of great ideas to use cash to generate more cash , all it can imagine is buying shares at 25 (now 14) and giving people half its profits out every year to waste it on random ideas that the masses are obviously so smart about, or invest in speculative ideas in other companies during a ridiculous for the US science and technology era. Almost 1 bil last quarter of earnings was wiped out to a trading position!!! Have these guys ever heard of hedging and derivatives done properly? These supposed to be highly educated guys had the audacity to think that a coordinated large scale effort to make money from sitting cash by a massively rich in brains corporation is dwarfed by the random logic of clueless shareholders to whom they gave half their cash over time!!! These inept leaders should have had the scientifically designed vision to know exactly how to use billions of sitting $ to generate 1-2 more bil $ earnings per year on top of the cpu market and in fact continue to grow that way the earnings at an easy 5-10% rate every year just by exploiting their cash reserves into an unbelievably large array of positive concepts that the average individual out there does not have the appropriate capital and connections or infrastucture, education etc to do on his /her own! Banks do not lose money if they are simply involved in reasonbly low profile and sub 20% profit ideas with their cash reserves (they lose because they do wild greedy things!). The same should be true for a large corporation. Obviously its pretty standard to have 10-20% return on cash if you have billions of $ and the capacity to invest it properly. And by that i mean use the money for all kinds of projects that require capital but are not at all risky and offer standard well understood income.

      What a waste of money for a decade! The stock would have been at 30 if only these guys had done the most elementary of things , use their cash earned from fat and flat earnings the past 10 years apppropriately instead of totally wasting it!

      • 1 Reply to maximum_probability
      • You describe incompetent, wasteful management and then propose to let them continue to mismanage- that doesn't make sense.

        We are better off getting the profits- the value of the company will go up as a dividend play- which is where the money is going in this market.

        The industry is a mature commodity business with little to no competition. This means that the Intel with over 90% market share can further cut back on development and that will increase profits. But we will need more business oriented management to change from an engineering driven company and deal with all these overpaid engineers who are oblivious to what is going on in the market.

    • The solution to not liking how Intel manages itself is to sell your stock in it. It seems silly and irresponsible to raise the dividend as revenue and profit drop precipitously.

    • It's precisely because of dumbazzes like you that US long term competitiveness has gone down the toilet. You're not an investor, you're a short sighted pig grunting at the trough and demanding instant gratification.

      Fortunately, you and your ilk are being sliced into bacon.

    • That certainly would make the stock more attractive.

      • 1 Reply to trader45891
      • Wow- there appears to be another non-employee posting to this board.

        For job security reasons, engineers will always see a need to push technology and they will advocate doing so in all circumstances and at any cost. They are in denial that THERE ARE NO REAL COMPETITORS!! That means you are working at the best place you can be- there are no companies doing more advanced work or offering better tools to do your job than Intel- be thankful.

        Employees need to understand that long term stock holders have lost patience with loosing money while the company spends money they don't need to spend- it's old school thinking and wasteful that robs investors of profits that we are entitled too.

    • "Clearly times have changed"

      that's exactly why Intel should NOT raise the dividend.
      This isn't the time to be distributing cash reserves to shareholders. This is the time to preserve cash reserves and or to spend the $$$ on r&d to further cripple the economically hammered, flagging competition.
      Dividends should only come from free cash flow not the piggy bank and Intel's free cash flow has been hurt by the prevailing economic circumstances.
      I suggest you take a look at last q's report.
      btw, one-time or special dividends are the worst of ideas.

      I'm glad that you're not the ceo.
      With your business sense you couldn't run a pop stand.

 
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