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Quick Take: Should You Buy Intel?

Stocks in this article: INTC

NEW YORK ( TheStreet) -- While Intel (INTC) has been struggling as of late, the stock is still up 10% on the year and offers a healthy yield. TheStreet's David Peltier, portfolio manager of TheStreet's Dividend Stock Advisor, tells investors if the stock is worthy of their attention.

The stock offers a 4% dividend yield, which is quite appealing, Peltier says, even as 10-year treasury yields approach the 3% threshold.

Not only is the payout high, but it's secure as well. The company is expected to earn from $1.90 to $2 a share in fiscal 2013 and 2014. The annual dividend payout stands at less than half of that, at only 90 cents.

Aside from the dividend not being raised in the previous five quarters, there's still one main concern to consider: Stalling gross margins.

Peltier added that when a company's gross margins begin to decline, historically a stock becomes a sell.

He went on to say that investors who own the name can likely hold on to it for the time being, but if the broader market starts to rally, the stock will likely underperform.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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