Intel cuts dividend by 66% in bid for ‘improved financial flexibility’

Intel Corp.
INTC,
-5.61%
is cutting its dividend, the chip company announced Wednesday. Intel will pay a quarterly dividend of $0.125 a share, whereas the company’s prior quarterly dividend was $0.365 a share. That amounts to a roughly 66% cut. “The decision to decrease the quarterly dividend reflects the board’s deliberate approach to capital allocation and is designed to best position the company to create long-term value,” the company said in a release. “The improved financial flexibility will support the critical investments needed to execute Intel’s transformation during this period of macroeconomic uncertainty.” Intel reaffirmed its 2023 outlook, which calls for $10.5 billion to $11.5 billion in revenue and a 15-cent adjusted loss per share. Shares of the company were off about 0.6% in premarket trading Wednesday.