Intel Hikes Dividend, Cites 'Best Year Ever'

SANTA CLARA, Calif. ( TheStreet) -- Clearly, Intel ( INTC) is not encountering the same economic woes that Cisco ( CSCO) has talked about. The chipmaker has announced plans to raise its quarterly dividend by 15% to 18 cents, citing strong demand for its products.

Intel's shares climbed 29 cents, or 1.37%, to $21.50 in pre-market trading as investors reacted to the dividend raise.

"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said Intel CEO Paul Otellini in a statement released before market open. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."

The chip giant, which was recently upgraded by UBS, has enjoyed strong quarterly results this year and Otellini recently said that PC unit shipments are on track for year-over-year growth of 18%.

--Written by James Rogers in New York.

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