Motley Fool Money What Happened To Intel?
Feb 22, 2023
Robert Brokamp joins the discussion, bringing insights on personal finance and investing strategies. The talk dives into Intel’s drastic 65% dividend cut and the implications for shareholder confidence. Brokamp also answers pressing questions about pensions, likening them to fixed income assets, and offers tips on budgeting and investing for young adults. The team highlights essential strategies for teaching kids about financial growth and navigates the complexities of using taxable versus Roth accounts for investment.
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Intel's Dividend Cut
- Intel CEO Pat Gelsinger's recent dividend cut contradicts his prior commitment to a "healthy and competitive dividend."
- This raises questions about his leadership and Intel's financial strategy.
Gelsinger's Misleading Commitment
- Gelsinger's commitment to the dividend was technically true, but misleadingly omitted potential changes.
- He and his team likely knew a cut was probable, given Intel's declining performance.
Pressure on Intel's Investments
- Intel's $4 billion dividend reduction creates pressure on their other investments to succeed.
- This move signifies their need to regain competitiveness against rivals like AMD.