At 10:55 this morning, I sold 1/2 of my INTC position at $23.2716 per share. Since we are past the x-dividend date of May 4 and the date of record of May 7, I will still recieve my June 1 dividend payment.
Why the sell?
1. Goldman Sachs downgraded the stock to a target of $20 per share.
2. I can buy back the stock before the August 4 (estimated) x-dividend date.
3. It looks as if INTC has reached a peak. So I’m taking some off the table.
The dividend rate is currently 3.04% so I want to be back in this stock before the first of August. If the stock drops below $20, I will likely buy at that time.
I still believe that INTC has a great story and will be a large part of the future of computing. If the stock does drop yet the fundamentals hold up, I may double my buyback. And I’m keeping half of my position just in case Goldman is wrong and the corporate pc upgrade kicks in large.