They borrowed to buy back stock, this has a nice side effect of reducing the overall amount of shares and also dividends they pay out for those shares. Seriously though, not even close to what you said, are you on drugs?
Nope. You should sell if you think so but noone else it remotely worried.
There will be pleny of warning about dividend problems. If you feel uncomfortable about this, you should either sell, hedge or short Intel depending on your risk tolerance. The market is not targeting a drop. If the analysts thought there was a possibility, don't you think one of those with a SELL rating and a low target would raise concern? I bet Romit Shah would. I bet Covello would. They have not.
A company reduces a dividend as a very last resort. It is a disaster for their stock price. CTL was a dividend yield play and lowered their dividend about 2 months ago from 54 cents to 25 cents. You can see that their stock price dropped from $41 to 33. The phone companies are a good model of how much dividend a company feels comfortable with paying. They are paying 10 times what INTC is paying and raising the dividend.
Q4 Pay out ratios
INTC 41% ... and Q3 INTC payout ratio was 30%