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Shares of Intel (INTC) have been hammered on news showing that PC sales to consumers have been soft in the current back to school quarter.

I think that sell off ignores the company’s strengths in other markets, such as servers, that show no signs of slowing growth, and it ignores the huge replacement cycle coming for PCs as businesses and consumers all make the purchases that they put off during the recession.

Timing a product replacement cycle in an economy as tough to read as the current one isn’t easy—but thanks to the drop in Intel’s price the stock comes with a very acceptable 3.4% dividend yield. That means you’ll get paid to wait for the replacement cycle to kick in.

And at a rate that’s well above the current 2.75% yield on 10-year U.S. Treasuries.

A technology stock with great potential for capital appreciation and paying a 3.4% yield?

Those don’t come around very often. (Especially ones that have $18 billion in the bank, as Intel did at the end of the second quarter.)

Intel is already a member of my Jubak’s Picks 12 to 18 month portfolio, Today, September 17, I’m adding it to my Dividend Income portfolio as well.