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The Warning Sign Hidden in Intel's Dividend Cut

TheMotleyFool

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The Warning Sign Hidden in Intel's Dividend Cut: https://g.foolcdn.com/editorial/images/722154/tweezers-with-computer-chip.jpg

After years of struggling through a seemingly perpetual turnaround, Intel (NASDAQ: INTC) said on Wednesday that it was cutting its quarterly dividend from $0.365 per share to $0.125, slashing it by 66%.

Arguably, Intel's dividend had been the best reason to own the stock, and the move cut its dividend yield from 5.5% to 2%. As you can see from the chart below, Intel's dividend is now even lower than it was a decade ago. It's back where it was in 2007.