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As the standard bearer in the processor business,
INTC) boasts a pretty wide moat. Al told, it owns around 80% of the microprocessor market. That scale, coupled with a computer chip market that's been out of favor with investors means that Intel's dividend yield is massive. At current prices, the firm pays out just over 4% of its market cap in cash to shareholders. And that number could be due for a hike in the next quarter.
Intel's share of the PC chip market makes it a force to be reckoned with. Because the firm generates substantial cash, it's able to shove more money into R&D than any of its peers, and ensure that its products are the fastest, the most efficient, and the lowest cost. But that doesn't mean that Intel is unchallenged right now -- the mobile device market could pose a problem for Intel in the years ahead. That's because Intel doesn't own the dominant share of the chips that power mobile devices, and as consumers increasingly substitute their iPads for PCs, demand for chips remains soft. To combat that, Intel has been hard at work to market its Atom processor line, which has become increasingly competitive at using less power.
From a financial standpoint, Intel is in solid shape. The firm carries a $13 billion net cash and investment position, and that should continue to widen as Intel carves a bigger chunk out of the mobile market and sees the down cycle in PCs wear off. Currently, Intel pays a 22.5-cent quarterly dividend, but the firm has the wherewithal to hike that payout.
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