Intel (INTC - Get Report) is another massive name that's looking well-positioned for a dividend hike. The $105 billion microchip maker has been under pressure from sellers over the last year, down more than 23% over the trailing 12 months. But while INTC's share price has struggled, its dividend yield has been ratcheting higher and higher. Don't be fooled by the generous 4.2% yield right now -- Intel still has room to move its 22.5-cent payout even higher in 2013.
I've made it no secret that I like Intel for income investors -- the stock made my list of 5 Must-Own Dividend Stocks for 2013 in March. A big part of Intel's income prowess comes from how well it's managed to dominate the chip business; the firm currently controls around 80% of the microprocessor market. So while PC makers have been falling all over themselves to find a better business than building computers, Intel has been eating their margins along the way.To be sure, the semiconductor industry's relative weakness in recent years has posed a big problem for Intel. Even if the firm's fundamentals have remained attractive, share prices have dropped like rocks across the board. At this point, it looks like a case of overcorrection on the part of sellers, and now, with INTC consolidating, shares could be in store for a rally in 2013. Investors who want to lock in this stock's hefty cost basis dividend yield should start buying here.