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Comment by anthonyskipper | Hacker News Reader

The dividend keeps the stock price high, which is good for both shareholders and employees. Cutting employment is how you manage to pay the dividend when you losing money. Not paying the dividend would crash the stock price and make lots of things harder.

If you believe Intel will be profitable again in the near future then paying the dividend really does make sense. Unfortunately there have been lots of companies that thought that was true when it wasn't and the dividend is how they ran out of runway quick.

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> If you believe Intel will be profitable again in the near future then paying the dividend really does make sense

If you believe your company will be profitable you should reinvest all avaliable capital into the business to grow it.

What you are advocating is contrary to every shred of logic and common sence.

> If you believe your company will be profitable you should reinvest all avaliable capital into the business to grow it.

No, because being profitable doesn’t mean marginal profits from expansion are available. Your plan would have all profitable firms expanding until they collapse from overextension.

Sure, this is true for tabacco companies and oil companies that are milking cashcows in a stagnant market.

This should not be true for microchip manufacturer during global computerisation. We now have microchips in sofas and handbags.

So you are saying Intel should plow its profits into expanding into crowded, low-margin markets?

Is Apple M1/M2 low margin? Can intel profuce anything as good as M2?

No? Then they are under investing in R&D. It's been a while since M1 came out and intel CPUs still havent caught up.

They GPUs are lacking too. Apply has AI inference functionality in their chips and great ML software support.

You don't get to tell me that they have nowhwre to invest when they are losing on multiple fronts.

I am not even mentioning the fact that they should be finding foundamentally new opportunities ahead of their competitors.

Apple doesn't sell chips

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