At $16, INTC would be yielding 5.25% instead of 4% but you are absolutely correct about having enough cash to transact the business necessary. For 5.25%, one might be tempted to make some portfolio changes to take advantage. It beats the sub-3% in treasuries.
It would take INTC specific news to trigger another 25% drop in INTC. With the dividend cash flow coverage and cash in the bank, the 21 cents per quarter is pretty well protected.