On Monday Intel Corporation (INTC) president and CEO Paul Otellini announced that he will step down and retire in May.
Mr. Otellini’s retirement ends a 40 year career with the company, the last 8 of which were as CEO. During his 8 year tenure as CEO (from second quarter of 2005 to the present), Otellini paved the way to record growth as annual revenue grew from $38.8 billion to $54 billion, while annual earnings-per-share grew from $1.40 to $2.39.
Intel also saw quarterly dividends for the company increase +181% from 8 cents per share to 22.5 cents per share during his reign. Total dividend payout was $23.5 billion.
Not only did the company see financial success during Otellini’s tenure, but also saw great innovation that has included the first smartphones and tablets for sale with Intel inside.
“I’ve been privileged to lead one of the world’s greatest companies,” Otellini said. “After almost four decades with the company and eight years as CEO, it’s time to move on and transfer Intel’s helm to a new generation of leadership. I look forward to working with Andy (Andy Bryant, Intel Chairman of Board), the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO.”
The board of directors will now start the process to choose Otellini’s successor; they will look at both internal and external candidates.
Intel shares were up 16 cents, or +0.79%, in premarket trading on Monday.
The Bottom Line
Shares of Intel Corporation (INTC) have a 4.46% dividend yield, based on Friday’s closing stock price of $20.19. The stock has technical support in the $18-$20 price area. If the shares can firm up, we see overhead resistance around the $22-$24 price levels.
Intel Corporation (INTC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.