Updated from 3:38 p.m. EST

Chipmaker

Intel

(INTC) - Get Report

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

Microsoft

(MSFT) - Get Report

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) - Get Report

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.