Sunday, May 21, 2017

Recent Transfer: INTC

Intel Corporation (INTC) is an American multinational semiconductor chip maker corporation with headquarters in Santa Clara, California. Intel makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. INTC the world's largest and highest valued semiconductor chip maker, based on revenue.

INTC pays quarterly dividends in the months of March, June, September, and December. Recently, the company increased its dividend by 4.81% to 27.25¢ per share. At $35.40, INTC yields 3.08%.

The stock is no longer on the CCC list because the company failed to increase the dividend in 2014. With increases in 2019 and 2020, INTC will once again earn Dividend Challenger status.

Background


I'm consolidating our IRA's and bringing them into the DivGro fold. My end goal is to have DivGro distributed over five different accounts, one trust account at Interactive Brokers and four IRA's at FolioInvesting.

With this post, I'm reporting on the final IRA transferred from Wells Fargo to FolioInvesting. This is a Roth IRA my wife opened in April 2003. I'm retaining a single holding, INTC, transferring the remaining account value in cash.

The goal of this post is to create a record of past transactions and dividends received for the INTC position. I already own 220 shares of INTC at a cost basis of $23.31. With this transfer, I'm adding 120 shares.

Transactions


My wife owns 120 shares of INTC, which she bought in February and March of 2012 at an average cost basis of $21.02 per share. Since the purchase, she's collected dividends totaling $460.20 for a payback of 18.24%:

2013-02-28Bought 45 shares of INTC at $21.02 per share:$945.90
2013-03-01Bought 55 shares of INTC at $21.01 per share:$1,155.55
2013-03-01Bought 20 shares of INTC at $21.07 per share:$421.40
2013-06-01Dividend on 120 shares at 22.50¢ per share:$27.00
2013-09-01Dividend on 120 shares at 22.50¢ per share:$27.00
2013-12-01Dividend on 120 shares at 22.50¢ per share:$27.00
2014-03-01Dividend on 120 shares at 22.50¢ per share:$27.00
2014-06-01Dividend on 120 shares at 22.50¢ per share:$27.00
2014-09-01Dividend on 120 shares at 22.50¢ per share:$27.00
2014-12-01Dividend on 120 shares at 22.50¢ per share:$27.00
2015-03-01Dividend on 120 shares at 24.00¢ per share:$28.80
2015-06-01Dividend on 120 shares at 24.00¢ per share:$28.80
2015-09-01Dividend on 120 shares at 24.00¢ per share:$28.80
2015-12-01Dividend on 120 shares at 24.00¢ per share:$28.80
2016-03-01Dividend on 120 shares at 26.00¢ per share:$31.20
2016-06-01Dividend on 120 shares at 26.00¢ per share:$31.20
2016-09-01Dividend on 120 shares at 26.00¢ per share:$31.20
2016-12-01Dividend on 120 shares at 26.00¢ per share:$31.20
2017-03-01Dividend on 120 shares at 26.00¢ per share:$31.20
Total capital invested:
$
2,522.85

Total dividends received:
$
460.20

Commissions/fees/taxes:
$
0.00

With this transfer, DivGro's projected annual dividend income (PADI) increases by $130.80 and I'm adding $460.20 in past dividends to DivGro's total dividend income.

We already own 220 shares of INTC, so this transfer increases our INTC position to 340 shares. The average cost basis is $22.50 and the average YoC is 4.84%.

Thanks for reading! Do you own shares of INTC or do you have plans to buy shares? Please let me know in the comments below.

8 comments :

  1. Even my plan is to start consolidation of my accounts.Some of it is forced due to loyal3.

    ReplyDelete
    Replies
    1. Yeah, the Loyal3 announcement was disappointing. My sons have Loyal3 accounts and I'm not sure what they're going to do now... Paying $5 a month for beginning investors is quite expensive, relatively speaking...

      Delete
  2. I would take a look at Robinhood. It is app based only but no commission costs. They do not currently take stock transfers in but claim to be working on it. The only question is will they have the same issue as Loyal3 at some point. They do have a monthly paid option that will hopefully keep that from happening. I have been happy with Robinhood so far. I used the Loyal3 demise to open an account with IB. I could not transfer directly from Loyal3 to IB though so I had to move my Loyal3 to Scottrade first. I will let it sit there for a few months and then continue the move to IB. I also wanted IB as another option since Scottrade is turning into TDAmeritrade later this year. If I don't like it, I will have a place to move to.

    ReplyDelete
    Replies
    1. Thanks for the suggestion, Tech2K. I looked at Robinhood briefly and pointed my sons to it as a possible solution. Being only app based shouldn't be a problem for them, as they are all quite app savvy... I'm not sure what they're going to do, though. It sounds like at least one of them do not want to sell his stocks in order to move them, so he's going to go with FolioFirst. As I guessed, FolioFirst is a special trading platform for Loyal3 customers, created by FolioInvesting. I'm very familiar with FolioInvesting as I've been a customer since 2002.

      Delete
  3. I ended up moving loyal3 to TD Ameritrade. I liked Loyal3, In a way I am done with free investing, not sure when the next one is going to go kaput.

    ReplyDelete
    Replies
    1. I'm with you, dividendGeek -- this is the 2nd one I'm involved with that folded. No matter how honorable, free just doesn't seem to work in our world!

      Delete
  4. Hi, about your IB account.. do you have cash account or margin account? If you have margin account, do you pay any interest fees for margin?

    ReplyDelete
    Replies
    1. Yes, I do have a margin account. For margin accounts, IB charges interest only if the account balance is negative. When trading options, one can choose to use margin or keep a sufficiently large amount of cash to secure short put trades.

      Delete

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