“The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value,” Intel said in the statement. “The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty.”
Intel Corp., the biggest maker of computer processors, slashed its dividend payment to the lowest level in 16 years in an effort to preserve cash and focus on a turnaround plan.
The company will reduce its quarterly distribution to investors to 12.5 US cents (16.75 cents) a share, payable June 1, the chipmaker said in a statement Wednesday. Intel’s current quarterly dividend is 36.5 US cents and was projected to cost more than US$6 billion in 2023. The new payment resets Intel’s dividend to a level not seen since 2007.
