Intel shareholders have received a boost, as the firm’s board of directors agreed to up its cash dividend to $1.04p a share on an annual basis, starting in the first quarter of 2016.
This is an 8 cent increase.
Stacy Smith, Intel CFO, said: "The 2016 dividend increase reflects confidence in the strategy and Intel’s ongoing commitment to create value and return cash to shareholders."
It comes on the back of the firm issuing a positive business outlook for the fiscal year 2016. Intel predicts revenue growth in the mid-single digits, with a 62% gross margin plus or minus a couple of points. The increased revenue will largely come from increased demand for chips for data centres, as well as other products outside its core PC chip market.
CEO Brian Krzanich told the meeting that he expected the firm to report revenue of $55.2bn for 2015, which is in line with Wall Street estimates, around 1% lower than was reported in 2014.
In terms of spending, the firm’s outlook says its R&D and MG&A is expected to be down half a point as a percentage of revenue. Capital spending will be $10bn, plus or minus $500m, which includes around $1.5bn for Memory.
