10 Biggest Dividend Cuts and Suspensions of 2024

2. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 68

Intel Corporation (NASDAQ:INTC) is a multinational tech company primarily known for designing and manufacturing semiconductors and microprocessors. In August, the company revealed plans to reduce its workforce by over 15%, cutting approximately 17,500 jobs, and to suspend its dividend beginning in the fourth quarter. This move is part of the chipmaker’s strategy to restructure and focus on its struggling manufacturing business. Management emphasized that while the long-term goal is to pay a competitive dividend, the immediate priority is strengthening the balance sheet and reducing debt.

Intel Corporation (NASDAQ:INTC) reported weak earnings in the third quarter of 2024. Its revenue of $13.3 billion fell by 6.17% from the same period last year. Restructuring charges significantly affected Q3 profitability as the company made key progress toward its cost reduction objectives. During the quarter, it generated $4.1 billion in operating cash flow and returned $0.5 billion to shareholders through dividends. INTC is one of the companies with recent dividend cuts.

Invesco Distributors, Inc. also highlighted Intel Corporation (NASDAQ:INTC)’s weak earnings in its Q3 2024 investor letter. Here is what the firm said:

“Intel Corporation (NASDAQ:INTC): The chipmaker reported weaker-than-expected quarterly results as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward; the stock fell on the news. We sold the position during the quarter.

The chipmaker’s quarterly earnings report was weaker than anticipated as revenues declined and earnings were below expectations. Management also provided weaker guidance going forward. Given that a potential recovery appears to be further in the future than we originally anticipated, we sold the position.”

Hedge funds also remained bearish on Intel Corporation (NASDAQ:INTC) during Q3 2024, as per Insider Monkey’sdatabase. 68 funds owned stakes in the company in Q3, down from 75 in the previous quarter. These stakes are worth over $1.26 billion in total.