5 Best NASDAQ Dividend Stocks To Buy

1. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Shareholders: 65

Dividend Yield: 5.02%

Topping the list is another chipmaker, Intel Corporation (NASDAQ:INTC), whose shares also boast the second-highest yield on this list at slightly more than 5%. The company hiked its dividend by 5% this year, about in line with its 6% CAGR over the past five years. With a payout ratio of less than 50%, Intel should be able to keep building on its 7-year run of dividend growth, even as it invests heavily in the company’s future.

Intel plans to slash its annual costs by as much as $10 billion by 2025, which would certainly help. Regardless, with nearly $25 billion in cash, the company can afford to fund its dividend for several years even if it’s failing to generate free cash flow, which will be the case this year, with the company’s FCF loss expected to be between $2 billion and $4 billion.

Since hitting an all-time high in hedge fund ownership during the first quarter of 2021, there’s been a 23% drop in the number of funds long Intel Corporation (NASDAQ:INTC) since, including a 13% drop during Q2. Of the funds that have filed their 13Fs for Q3 thus far, another two have unloaded their INTC stakes.

Baron Funds discussed Intel Corporation (NASDAQ:INTC)’s subpar net income growth over the past 22 years in the fund’s Q2 2022 investor letter:

“Then, there is the case of Intel Corporation (NASDAQ:INTC). A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.”

For more of the latest stock picks worth considering for your portfolio, check out the 10 Best Fuel Stocks To Buy and the 10 Best Shipping and Container Stocks To Invest In.

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