5 Best Safe Dividend Stocks To Buy According to Billionaire Dan Loeb

3. Intel Corporation (NASDAQ: INTC) 

Loeb’s Stake Value: $49,820,000
Percent of Dan Loeb’s 13F Portfolio: 0.38%
Number of Hedge Fund Holders: 72
Dividend Yield: 2.40%

Intel Corp. is one of the best chip stocks to buy. The company also offers a decent dividend yield. The company recently reported $19.7 billion GAAP revenue in Q1 2021, down 1% YoY. Non-GAAP revenue stood at $18.6 billion, above the expectation by $1.1 billion.

Bank of America has rated the stock as “Underperform” with a price target of $62. However, the bank lauded Intel’s wide product breadth and its role in domestic manufacturing. Some of the issues raised by Bank of America include the zero growth in sales and falling gross margin trajectory.

Alger Spectra Fund, in its Q1 2021 investor letter, mentioned Intel Corporation (NASDAQ: INTC). Here is what Alger Spectra Fund has to say about Intel Corporation in its letter:

“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”