Intel: slashes dividend to preserve cash

(CercleFinance.com) - Intel announced on Wednesday that reduce its dividend by nearly 2/3 to preserve cash amid economic uncertainty.


The processor maker plans to pay its shareholders a quarterly dividend of 12.5 cents per share, or 50 cents on an annual basis, on 1 June.

The Santa Clara, California-based company previously paid shareholders a quarterly dividend of 36.5 cents per share, or $1.46 on an annual basis.

In its statement, the semiconductor specialist explained that this measure will give it greater flexibility to finance its "critical" investments in the current phase of economic uncertainty.

Intel confirmed a Q1 2023 sales forecast of 10.5 to 11.5 billion dollars, and a gross margin of 34.1%, as announced in January.

Excluding exceptional items, its net loss per share should be around 15 cents for Q1.

For the record, the company aims to cut costs by three billion dollars this year, which should bring its total savings to between 8 and 10 billion dollars by 2025.

The stock was expected to fall by nearly 1% on Wednesday at the opening of Wall Street following these announcements.


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