Intel has Been Best Performer on Dow ...
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Tim Lambert
Intel has Been Best Performer on Dow Jones Industrial Average!
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Even though other high tech blue chips such as IBM (NYSE: IBM) and AT & T (NYSE: T) receive more publicity, Intel (NASDAQ: INTC) has been the best performing member of the Dow Jones Industrial Average (NASDAQ: INTC).

The Dow Jones Industrial Average is up 4.53 percent for 2014.  IBM has risen 3.42 percent for the year.  Over same period, AT&T has jumped by 3.34 percent.  For 2014, the share price of Intel has increased by 37.82 percent.

Intel is up for the last week, month, quarter, six months, and year of market action (chart below).

There is much about Intel that appeals to growth, value, and income investors.  For growth investors, the rate of earnings per share growth is expected to increase.  That is very bullish. Due to its size, market capitalization of over $170 billion, the giant chip maker will not deliver jaw dropping growth.  But growth of 8.83 percent annually over the five years is projected, which is a healthy rate.

So is the profit margin.

Intel is not overvalued.  But there is a strong argument that its profit margin of 19.10 percent makes its undervalued.  That is particularly so when coupled with the bullish earnings growth numbers.  Intel is still an attractive value stock.

As an income stock, Intel is very compelling.  Its dividend yield of 2.58 percent is much higher than the average for a member of the Standard & Poor’s 500 Index (NYSE: SPY).  Intel’s dividend that of 2.31 percent for IBM, too.  Intel also has a history of growing the amount of its dividend.  Those who do not sell Intel get a raise when the dividend amount is increased.

Intel is one of those stocks that long term investors should have in a portfolio.

That results in its appeal to growth, value, and income investors.  Growth will never be stunning for Intel due to its size.  But the share price has been the fastest growing one on the Dow Jones Industrial Average for 2014 in a record-breaking bull market!



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