The recent stock market correction has hit the computer industry especially hard; and therein lies another investment opportunity. ... I am recommending Intel Corp. (INTC, Nasdaq), one of world’s largest technology companies, founded in 1968. Intel has survived through the ever-changing times by both anticipating and adapting to the needs of the ever-changing world, through their technology. Over the past 42 years it has improved quality of life worldwide, in the areas of environmental sustainability, healthcare, communications, education and more. Think of how their technology has touched your life—with better cameras, health imaging equipment, computers used in schools, etc.
As with everything I recommend, Intel is in rock solid financial shape. In the large high tech rally that ended in 2000, Intel was trading at over $75 a share. Today their stock is worth just around $19. Strangely, the company now has higher earnings than it did back when its stock value was higher. To me, this factor makes no sense. However, like our other technology stock, its value has gone down along with the rest of the technology stocks.
Intel pays a dividend of around 3% which is both solid and much higher than you probably would get on a lot of fixed income investments. Even if you have to wait for a while, you will see that its market value comeback will be worth the wait.
Russ Kaplan, Russ Kaplan’s Heartland Adviser
