Intel has approved an increase in its cash dividend by 8 percent to USD 1.04 per share on an annual basis, starting with the dividend that will be declared in the first quarter. The company also provided a business outlook for 2016.
During an investor meeting, CEO Brian Krzanich addressed Intel’s strategy to use the company’s core assets to move into profitable, complementary market segments. He described Intel’s Client Computing business as a strong foundation, which delivers healthy profits and critical intellectual property to the rest of Intel. The Data Center, Internet of Things and Memory businesses are expected to be growth engines for the company.
For full year 2016, The company is guiding for revenue growth in the mid-single digits, compared to an expected 1 percent decline this year. The gross margin next year is estimated at 62 percent (plus or minus a couple points), and spending down by half a point as a percent of revenue. Capital expenditure is forecast to increase to USD 10 billion, plus or minus USD 500 million, compared to guidance for this year of USD 7.3 billion.