10 Best Innovative Stocks that Pay Dividends

4. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 75

Intel Corporation (NASDAQ:INTC) is a California-based company that manufactures and designs computer components and semiconductors. The company is well-known for its pioneering achievements in microprocessor technology. In 1971, it developed the Intel 4004, the first commercially successful microprocessor. This innovation transformed computing by combining the functions of numerous transistors into a single chip, leading to smaller, faster, and more powerful computers.

Intel Corporation (NASDAQ:INTC) has had a tough 2024 as the stock fell significantly by over 55% since the start of 2024. Moreover, the company reported mixed earnings for the second quarter of 2024. Its revenue came in at $12.8 billion, down 1% from the same period last year. The revenue also missed analysts’ consensus by $148 million. This performance was disappointing, despite achieving significant milestones in product and process technology. Results were affected by challenges with gross margins due to the rapid increase in AI PC product production, higher-than-usual charges from non-core businesses, and the effects of unused capacity. This was also highlighted by Invesco Distributors, Inc. in its Q2 2024 investor letter:

“Stock selection in the industrials and health care sectors detracted from relative performance during the quarter. Selection and an underweight in consumer staples also hurt relative return as the sector was one of just two index sectors with a positive return for the quarter.

Intel Corporation (NASDAQ:INTC): Shares declined after the semiconductor company reduced its second quarter revenue and earnings guidance. Investors also appeared concerned about the future of its foundry business and lack of AI market share gains.”

That said, by implementing spending reductions, Intel Corporation (NASDAQ:INTC) is proactively working to enhance its profitability and strengthen its balance sheet. These measures are expected to significantly improve liquidity and lower the debt balance while allowing for strategic investments that will create long-term value for shareholders. Currently, the company’s cash position provides some relief for investors. It ended the quarter with $11.3 billion available in cash and cash equivalents, up from $7 billion six months ago.

In addition, Intel Corporation (NASDAQ:INTC) generated $2.3 billion in operating cash flow during Q2 2024, which was sufficient to cover its dividend payments worth $0.5 billion. The company pays a quarterly dividend of $0.125 per share for a dividend yield of 2.35%, as of September 18. It is among the best innovative stocks that pay dividends.

Intel Corporation (NASDAQ:INTC) was a part of 75 hedge fund portfolios at the end of Q2 2024, compared with 77 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total of nearly $2 billion.