Intel Suspends Buybacks. Is its Dividend Next?
Last year, Intel (NASDAQ: INTC) announced plans to repurchase $20 billion in shares over the following 15 to 18 months. The chipmaker purchased $7.6 billion in shares in the fourth quarter of 2019 and the first quarter of 2020, but recently announced that it would suspend all future buybacks in light of the novel coronavirus (COVID-19) pandemic.
Intel stated that its dividend payments wouldn't be affected, but the abrupt suspension of its buybacks still raises a red flag. Let's examine Intel's dividend and see if a prolonged coronavirus crisis could lead to painful dividend cuts.
Image source: Intel.
Source Fool.com
