 sooner Intel can start putting out 10nm chips in volume the sooner it can both improve its price mix and spend its capital on higher end and more profitable chips.
To figure out a good price, I do a DDM calculation using my Excel-based DDM calculator (pictured below, you can see the web-based calculator I based it on here and read a discussion on how the formulas were developed here). I also found this discussion of DDM, and note that in the article the author uses a discount rate of 5%.
While I usually look to David Fish’s CCC List (which contains data on companies that have raised their dividend each year for five or more years), Intel hasn’t requalified for inclusion on that list yet. Intel has been on the list in the past, and it's again increasing its dividend. Since another quarter has gone by I will assume that one quarter at the current rate will drop off and be replaced by a quarterly dividend that's 2 cents higher than the current dividend to calculate that the dividends for the next 12 months, which will result in that figure being $1.26. Given that Finviz now projects a five-year CAGR for Intel’s earnings in excess of 10%, I will bump up by dividend growth rate to 7%.
Using those parameters, I calculate that the NPV (Net Present Value) of the predicted dividend stream is $46.43. That sets my buy price at anything under $47. INTC is currently trading just under $47, making it a good value at this time.
The four-year average yield being 2.59% which is below the current yield of 2.64% is more evidence that INTC is trading at a good value. I think that dividend growth investors should take a close look at INTC and see if they can find a place for it in their portfolio.
What to watch for going forward?
Intel gave guidance for the next quarter and the full year in the latest earnings conference call. Let’s look at full year guidance given in the last two quarterly reports.
For many companies, a 2.45% increase in revenue YoY would be reasonably good, but that's just how much Intel increased its full-year guidance for 2018 this quarter. The same can be said for the 12% EPS increase.
Intel is now guiding for a 13% increase in full-year revenue for 2018 over 2017. And a 31% increase in EPS. That's very good news for any company, and for one the size of Intel, it’s great. If the market will only afford me the opportunity to get some shares at a good value.
The guidance for Q4 also looks like that will be a good quarter as well. Back in 2017, Q4 had the highest EPS of any quarter during the year. So while the 13% growth in EPS from a year ago that management is giving for Q4 is a lot less than the increase this quarter, I think this is just management being modest and prudent. I expect the actual numbers will come in at least a bit higher.
Intel put in a very good quarter. And despite that it's still trading at a good value, something INTC hasn’t done for a while. I think dividend growth investors have an opportunity to get a great company that's again growing and pays a good price for its shares. AMD is still doing great but it's not slowing Intel down in any way I can see.
Disclaimer: This article is intended to provide information to interested parties. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to complete their own due diligence before purchasing any stocks mentioned or recommended. The price I call fair valued is not a prediction of future price but only the price at which I consider the stock to be of value for its dividends.
Beginning on October of 2018 I began working with Rida Morwa and his team at HDO. I both write articles in collaboration with the HDO team and on my own. Contributing authors, if any, will be listed after the bullet points at the start of articles.
My profile picture is an actual picture of me and 4 of my siblings from 1971. I am 9, and the one in the greenish shirt saluting (to keep the sun out of my eyes). My siblings are 8 (brother at far right), 7 (blond sister), 6 (sister in the red shirt) and 3. My grandfather is holding my youngest brother. In this picture, my grandfather is about 4 years older than I currently am.
I have been a software engineer developing applications in various fields for over 30 years. I began investing in mutual funds for my 401(k) back in 1988.I started investing outside of my retirement account a little over 17 years ago. I used to follow a value oriented strategy, but after I saw how that worked less well than I liked during the financial crisis, I began to switch over to a more income based approach.
I had always thought that dividends were important but didn't have a systematic way to evaluate stocks that paid them until I found SA and DGI. Starting around 2010, I have switched my portfolio to a DGI strategy.
One of my most profitable picks turned out to be Freddie Mac, which I originally chose because I liked the dividend and because I once worked there. When it first ran into problems I increased my holdings because it still looked like a good value to me. I eventually managed to buy several thousand shares at a cost of $0.50 (I knew that was a good value) and eventually exited the stock at a price that was $5 a share above my average share cost.
I am currently contributing articles to Rida Morwa's service High Dividend Opportunities.How To Juggle Work and School
Hi this is Anna Runyan and welcome to another episode of the Classy Career Girl podcast! I wanted to give a shout out to those of you who have tweeted me about how much they are loving the podcast! Thanks so much to the Unversity of Minnesota-Duluth Career Services! Ellen who tweets for UMD Careers says that she is loving the podcast and highly recommends them! Thanks so much for spreading the word and I hope that my podcast and blog is helping your college students!!
I also wanted to say a big thank you to the first cohort of the Get Unstuck course! I had such a great time going through the course and working with each of you in the course. Now that the course has finished, I have opened up the course again so that you can go through it on your own at your own pace. You will have the opportunity to watch all the webinars and videos whenever it is convenient for you. So definitely check that out if you are feeling totally stuck in your career. You can find more information at
So this morning and I had an interview with a reporter from the Chicago Tribune. This was my very first interview with a reporter and I am usually the one doing the interviews on my blog! So I was kind of nervous but super excited to talk about the subject which was how to juggle going back to school and working a full time job. I know all about that and I love speaking about it so the interview went great! Thanks to everyone who wished me luck on Twitter this morning as well. So I wanted in this podcast first to go over a few of my tips on how to juggle work and school, then I am going to play my interview with ChaChanna Simpson. ChaChanna is going to give us a bunch of tips on how to manage our time better and how to find work life balance. Then at the end I am going to answer a question from a reader about how to handle the interview question – why do you want to leave your current job? Or why did you leave your job?
So if you are thinking about going back to school and considering possibly doing it part time. Here are my tips for juggling work and school that I told the reporter from the Chicago Tribune this morning!
How to Juggle Work and School
So I chose to go to school to get my MBA part time because I loved my job and I didn’t want to leave it. But I needed more of a challenge in my job and I knew I needed more education and training to take me to the next level at my company. So I researched MBA programs near me in San Diego and decided to attend the Flexevening program at the Rady School of Management. I knew it was going to be a challenge but I was ready for it. The first year was tough, all I could do was survive and I definitely had to prioritize the important things in my life.
For instance, my husband is very important to me so I made sure I made time for me. But, my social life and my friends definitely suffered but the close friends understood and I did the best I could to keep in contact with them during breaks or when I had free time. Before you head back to school, you have to set expetations for yourself and know that you wn’t be able to keep up all of your relationships, get an A+ at school and not let your work suffer. Something is going to give so don’t try to be perfect at everything.
Just focus on the things that are the most important to you. For me, that meant that my house wasn’t as clean as I would have liked but I definitely didn’t have time to clean it. So learn to say no to things that you may not have time for but be sure to make time for networking! It is so important and truly is one of those thigns that you will leave with and will have long after you are done getting grades. I just went to an alumni networkin event the other night and it is amazine how supportive my classmates are and