I think they will still raise it this year to keep their streak intact. But they could wait until the 4th quarter to pay it and still keep their annual increasing dividend streak alive. That being said, i am thinking the raise this year will be $0.01/quarter or $0.94/anually.
FINANCIAL STRENGTH & DIVIDEND
Our financial strength rating for Intel is High. Intel's credit
ratings are mainly A1 or A2, per Moody's. However, if margins
continue to compress and cash decline accelerates, we will consider
a Medium-High rating.
Intel's cash & equivalents and investments totaled $17.3 at
1Q13. Intel's cash & equivalents and investments totaled $18.8
billion at year-end 2012, reflecting $6.2 billion in debt issued in
4Q12 as well as strong cash flows. Year-end 2012 cash was up
substantially from $10.5 billion at the end of 3Q12, which was
down from $13.65 billion at the end of 2Q12; the cash decline
primarily reflected the $3 billion equity investment in ASML. Cash
& equivalents were $14.8 billion at the end of 2011. Prior to the
acquisitions of McAfee ($7.7 billion) and Infineon WLS ($1.4
billion), cash was $21.9 billion as of the end of 2010. Cash was
$13.49 billion at the end of 2009, $1.8 billion at the end of 2008,
and $10.0 billion at the end of 2007.
Total debt was $13.2 billion at 1Q13. Total debt at the end of
2012 was $13.45 billion, as a result of $6.2 billion in debt issued in
4Q12. Total debt at the end of 3Q12 was $7.10 billion. Total debt
at the end of 2011 was $7.3 billion, up from $2.16 billion at
midyear 2011. On 9/15/11, Intel issued $5 billion in debt. Debt
was $2.31 billion at the end of 2010, flat with midyear 2010 and
up from $2.21 billion at year-end 2009.
Cash flow from operations was $4 billion in 1Q13. Cash flow
from operations was $18 billion in 2012. Cash flow from
operations was $20.9 billion in 2011; $16.7 billion in 2010; and
$11 billion in 2009.
Intel repurchased $500 million of its shares in 1Q13. Share
repurchases totaled $5.5 billion in 2012. Intel repurchased over
$10 billion of its stock in 2011.
In each quarter, Intel pays about $1 billion in dividends. Intel
raised its quarterly dividend by 16% to $0.21 per common share in
May 2011, and to $0.225 per quarter in May 2012. The current
rate implies an annualized payout of $0.90. Given strains on the
balance sheet, we are not modeling dividend growth in 2014. Our
annual dividend forecasts are $0.90 for 2013 and 2014.