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Intel Cuts Employee Pay to Maintain Quarterly Dividend

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Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#211

Post by osigurdson »

mrweasel wrote: post #192
epistasis wrote: post #148

Earlier quoted context omitted.

Depends on the investor. There is an entire class of investor that is focused on stocks that reliably deliver a dividend. I wasn't aware that Intel had joined old-economy companies like oil, but I also don't fully understand the dividend investor mindset, as I can't figure out a tax situation that makes it appealing...

> I also don't fully understand the dividend investor mindset That interesting, because I don't understand the mindset of investors who are just trading stocks like baseball cards. They don't seem to care what the company actually produce, just that the numbers tell them that the stock can sell for a little more next year. Divided makes a lot of sense, because it keeps yielding money, for the same initial investment.…

It is really just a matter of what a company does with its earnings. The options are: 1) invest in the business (including acquisitions, etc), 2) stockpile cash and 3) pay dividends.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#212

Post by siva7 »

anonreeeeplor wrote: post #55

You don’t want a Silicon job because your talent is illiquid. They can take a giant dump directly in your mouth while making steady eye contact and you can’t leave because there is nowhere to go. In software and in startups if you have relevant skills and modern, up to date experience you can switch easily. Don’t work in industries that are declining and have no future and require advanced technical training that is…

I can't emphasize enough how true this is - don't invest in non-transferable skills.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#213

Post by MrBuddyCasino »

chrgy wrote: post #57

The worse culture, I have ever seen in any company. Amazed how they are still in business. The corporate greed, the culture of nepotism, killing innovation has been dominant.

Same with IBM. Its amazing they still have customers.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#214

Post by drblastoff »

mrweasel wrote: post #192
epistasis wrote: post #148

Earlier quoted context omitted.

Depends on the investor. There is an entire class of investor that is focused on stocks that reliably deliver a dividend. I wasn't aware that Intel had joined old-economy companies like oil, but I also don't fully understand the dividend investor mindset, as I can't figure out a tax situation that makes it appealing...

> I also don't fully understand the dividend investor mindset That interesting, because I don't understand the mindset of investors who are just trading stocks like baseball cards. They don't seem to care what the company actually produce, just that the numbers tell them that the stock can sell for a little more next year. Divided makes a lot of sense, because it keeps yielding money, for the same initial investment.…

Studies have shown (take this with a grain of salt because I heard this from a podcast), that dividend stocks and non-dividend stocks have roughly equal returns in the end, with dividend stocks faring slightly worse.

This is because dividend stocks tend to appreciate less.

So taking $X in dividends every six months ends up being the same as selling $X of your portfolio every six months in the end.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#215

Post by midoridensha »

vkou wrote: post #178
anonreeeeplor wrote: post #55

You don’t want a Silicon job because your talent is illiquid. They can take a giant dump directly in your mouth while making steady eye contact and you can’t leave because there is nowhere to go. In software and in startups if you have relevant skills and modern, up to date experience you can switch easily. Don’t work in industries that are declining and have no future and require advanced technical training that is…

> In software and in startups if you have relevant skills and modern, up to date experience you can switch easily. I will also point out that in the current climate, 'switch easily' isn't a given in software.

Sure it is, relatively. Software is used in all kinds of industries, not just ad-tech. There's no shortage of jobs in software, though the super-high-paying FAANG jobs are diminishing.

If you work in chip design for Intel, this just isn't the case; there's only a few places you can go.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#216

Post by paulpauper »

manv1 wrote: post #90

If Intel cuts its dividend the stock will crater. Since executive compensation is stock-based, tied to the stock performance, or both, there's an obvious incentive to keep the dividend going. The dividend has become more political than normal. In finance theory, a dividend is supposed to be a paid-out return. If you're cutting salaries to pay the dividend that means that you don't have enough surplus...by definition.…

This is why dividends are so bad. They become an obligation and companies get locked into paying them.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#217

Post by baq »

osigurdson wrote: post #112

I'm not an Intel shareholder (outside of ETFs maybe) but I would be far more interested in their stock if they cut their dividend entirely and invested 100% of earnings back into the business. Hire the best talent, become the kind of place where the best talent wants to be. Stop being a stodgy, old, risk averse has-been. I would really like to see Intel make a comeback but this dividend preservation move suggests the…

It needs to die inside first. There’s been hope with Pat but the results are here and it’s just more of the same. The purge is needed and looks like it’s finally coming, at least 5 years too late, but look at where AMD has been before. It’s a high risk high reward mun or bust play.

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#219

Post by ithkuil »

andromeduck wrote: post #206
ddorian43 wrote: post #172

Earlier quoted context omitted.

Depends on the market. If everyone gets a paycut and Powell strikes the interest rates you' may have no other alternative.

Apple, Google, Nvidia & gang will always be happy to snap up a few promising/experienced engineers.

"a few"

Re: Intel Cuts Employee Pay to Maintain Quarterly Dividend

#220

Post by baq »

cmdrriker wrote: post #89
UncleOxidant wrote: post #74

Earlier quoted context omitted.

Agreed. This is a very capital intensive business. They should be investing that capital into upgrading their technology. The dividend should be off the table for the next few years, at least. Paying a dividend probably made sense in the 90s and even into the early 2000s when Intel pretty much owned the whole PC CPU market. But now they're in a tough spot and the only way out is to invest that money that they're thro…

Intel lost this battle years ago when leadership decided to badge engineer the shit out of their product portfolio and do stock buy-backs. In a capital intensive enterprise, Jack Welch school of management will only give the company maybe 10 years before those opportunity costs blow signifgant holes in your boat. Look at TSMC, they take government money, invested that in people and material. They’ve got a work plan i…

Of all the things you picked the least relevant one. Intel without GPUs is dead. Gone. Zero. A foundry at best, with a decade to be top tier again. Intel without RISC is… fine? The instruction set doesn’t matter, the underlying hardware doesn’t execute it anyway, it runs microcode.
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