It’s not that shares of Intel (INTC) had such a stellar 2016–the gain for the year was just 5.3%. But the company continues to struggle with declining demand in its core PC market and faces strong resistance from competitors to its efforts to break into new markets, and that has constrained its ability to raise its payout so that every move up in the shares pushes the yield a little further below 3%. The dividend yield was down to 2.98% as of January 12.
That’s not enough to keep Intel in my Dividend portfolio. In this portfolio I look for yields of 4% or more. (With 5% as the ideal–but hey this isn’t a perfect market.) As of January 13, I’m selling these shares out of my Dividend portfolio.
For the 2016 performance of my Dividend portfolio and the challenges facing dividend investors in 2017, see my post from January 11. The record date for Intel’s last dividend was November 7, 2016. If 2017 follows form, the record date for the next dividend will be sometime around February 7, 2017.