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No. of Recommendations: 3
Hi Jim,

I'm glad you're still looking at Intel, as I recently established a position and really enjoy your analysis.

Here's a link to some INTC analysis I did on another board that focused more on the dividend side of the stock:

I'm sure there's nothing in there that you're not already aware of, and it's not really an MUE thesis, but I've been wondering if the dividend alone could be a catalyst for an increase in the stock price. Looking at historical payout ratios for Intel, if the stock stays in the $20 range it could easily reach a 5% dividend payout in the next couple of years. Specifically, if INTC raises its dividend by 15% per year for the next two years (inline with the last several years) from $.72 to $.95, and stock price stays at $20, we're talking about a 4.8% dividend yield.

I have a difficult time believing that a company as solid as Intel, paying that kind of a dividend, wouldn't have its price bid back up to a more reasonable dividend yield of 2% or 3%. If you take that same dividend of $.95 and solve for a 3% dividend yield, we get a stock price of almost $32. Solve for a 2.5% dividend yield and we get $38.

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