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Updated from 3:38 p.m. EST

Chipmaker

Intel

(INTC)

doubled its quarterly cash dividend to 4 cents from 2 cents, mirroring a move by

Microsoft

(MSFT)

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in September.

The boost pushes Intel's dividend yield to a paltry 0.5% of its recent $32.18 stock quote. But given Intel's enormous share count -- about 6.5 billion -- the boost is a substantial expenditure: The extra 8 cents per share a year comes out to roughly $522 million.

Still, the yield remains relatively small and will not cause dividend-hungry investors to flock to the shares. The chipmaker will continue to be valued primarily for its earnings growth potential rather than dividend yield.

Microsoft

(MSFT)

doubled its annual dividend to 16 cents in September, giving the shares a yield of 0.57% over their $28.14 price.

Intel will pay out the dividend on March 1, 2004, to common stockholders as of Feb. 7, 2004.

Intel said it began paying a cash dividend in 1992 and has paid a dividend for 45 consecutive quarters.