ValuentumAd

Official PayPal Seal

ALERT: Removing Intel (INTC) from the Newsletter Portfolios

publication date: Oct 28, 2020
 | 
author/source: Brian Nelson, CFA
ALERT: Removing Intel (INTC) from the Newsletter Portfolios

Image: Intel's share price performance since the inaugural edition of the Dividend Growth Newsletter portfolio. We're removing shares of Intel from both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.
---
By Brian Nelson, CFA
---
Today, we are removing Intel (INTC) from both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. Intel has been a part of both newsletter portfolios for a long time. The stock was included in the September 2011 edition of the Best Ideas Newsletter with a ~2% weighting in the portfolio at $19.89 per share, and it was included in the inaugural edition of the Dividend Growth Newsletter (January 2012) with a large 7% weighting at $24.25 per share. 
---
Most recently, Intel was within the top-weighted range for ideas in the Dividend Growth Newsletter portfolio, but we'll be changing that today. We're removing Intel from both newsletter portfolios in its entirety. Though we continue to like the company as we outline in our latest work here, competitive pressures and a balance sheet that sports a growing net debt position make it much less attractive of a stock, in our view. We tend to prefer healthier balance sheets in this environment, namely ones with huge net cash positions.
---
As the COVID-19 pandemic continues to spread, we believe that net cash rich, free-cash-flow generating powerhouses with strong competitive advantages and that are levered to secular growth tailwinds will remain the relative outperformers. Entities such as Facebook (FB), Alphabet (GOOG), PayPal (PYPL) are ones that fit the bill nicely, for example. We continue to emphasize ideas that have cash-based sources of intrinsic value as their core foundation (i.e. net cash on the balance sheet and strong expected free cash flows).
---
At the time of the inaugural Dividend Growth Newsletter in January 2012, Intel was paying an annualized dividend rate of $0.84 per share. Now, the company pays out an annualized dividend of $1.32 per share, showcasing nearly 60% growth over this time period. Intel's Dividend Cushion ratio remains a very healthy 2.4x (a ratio comfortably above 1 indicates a strong dividend payer from a forward-looking financial standpoint). Intel has surely fit the mold of a strong dividend growth entity that has experienced strong capital appreciation, too.
---
In the Best Ideas Newsletter portfolio, the stock has advanced well over 125% when including dividends since its inaugural price, and in the Dividend Growth Newsletter portfolio, the stock has advanced well over 85% when including dividends since its inaugural price. After its removal, there will now be roughly a 6% cash weighting in the Best Ideas Newsletter portfolio and a 10% cash weighing in the Dividend Growth Newsletter portfolio. 
---
Please note the updated Disclaimer and Terms and Conditions for the website. We're available for any questions.
---
Kind regards,
---
The Valuentum Team
---

It's Here! 
The Second Edition of Value TrapOrder today!
----
Related: AMD, XLNX
---
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.
---
Brian Nelson owns shares in SPY, SCHG, DIA, VOT, and QQQ. Some of the other securities written about in this article may be included in Valuentum's simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.

1 Comments Posted Leave a comment

michael marek (western springs )
 

Add a comment:

Sign in to comment on this entry. (Required)


-------------------------------------------------
The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Valuentum Exclusive publication, and any reports and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor, and does not offer brokerage or investment banking services. The sources of the data used on this website and reports are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum, its employees, and independent contractors may have long, short or derivative positions in the securities mentioned on this website. The High Yield Dividend Newsletter portfolio, Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio are not real money portfolios. Performance, including that in the Valuentum Exclusive publication and additional options commentary feature, is hypothetical and does not represent actual trading. Actual results may differ from simulated information, results, or performance being presented. For more information about Valuentum and the products and services it offers, please contact us at info@valuentum.com.