Trading212 Portfolio- 03/08/20

Weeks summary


Stock picked: Intel

Ticker: INTC

Shares added:

Total shares owned:

Dividend yield: 2.75%

Payout ratio: 23.8%


Dividends received: £1.18

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This weeks stock


This week Intel ticker INTC was chosen by the community to have the £5 invested into. This stock has been beaten down recently, especially compared to its competitors. Even though beaten down the fundamentals are very interesting to read, you will also find some interesting news articles come out lately though it's not all good news.

What does Intel ticker INTC do?

Intel Corporation provides computing, networking, data storage and communication services throughout the world. Intel operated through Data Center group, Internet of things group, Non-volatile memory solutions group, Programmable solutions group, Client computing group and all other segments. Intel offers products such as CPU and chipsets, system-on-chip and multichip package products for cloud, enterprise and communication infrastructure markets. The Client Computing Group (CCG) operating segment includes platforms that integrates in Notebook, Two in one systems, Desktop computers for consumers and businesses tables and phones.

Fundimentals:

Dividend Yield: 2.75%

Payout ratio: 23.8%

Profit margin: 29.97%

Return on assets: 11.63%

Return on equity: 30.15%

P/E ratio (price to earnings): 8.77

Adjusted EPS: 5.44

EPS (Earning per share) Growth: 29.3%

BETA: 0.79

Cash: $25.81B

Debt: $38.35B

EBITDA: 38.12B

Stock breakdown:

Due to the share price of Intel dropping of late, it has created a nice yield of 2.75% which is very attractive to a dividend growth investor as its paired with a payout ratio of only 23.8%. A good dividend and a low payout ratio (under 60%) is something I love to see.


The profit margin is very healthy at 29.97%, which is 3x more than I would like to see (10%). Currently due to the drop in the share value the P/E ratio has dropped significantly to 8.77 which shows it could be around fair value.


There are a few reasons of late why the share value of Intel has gone down, first being that Apple ticker APPL has decided to start creating their own processing chips [1]. Second Intel has a class action law suit going against them, they are encouraging any investors with a loss in excess of $100,000 to contact them as they are making the complaint that the company made a false and misleading statement to the market, referring to Intels 7-nanometer products [2]. Lastly the delay alone of the 7-nanometer product was enough to send the stock price tumbling down 10% [3].

They have been making a nice EPS growth, with a current rate of 29.3% but going forward it will be interesting to see how the company handles these recent problems. Intel currently has a nice amount of cash compared to debt, which is what I like to see, especially in times like we are in.


My own opinion is that Intel is at a very attractive price with a nice and what looks to be safe dividend yield. But with current news I would be cautious buying into this stock for short term. Chip manufacturing is a very competitive market.

This stock is currently suggested as a hold from analysts with 20 out of 43 calling a hold position.


With the current news coming out of late companies like Goldman Sachs, Morgan Stanley, Roth capital and Deutsche Bank has downgraded this stock to neutral/equal weight/hold.






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Dividends received


This week we received 2 dividend this week totalling £1.68.

BEP @ £1.56

SPG @ £0.12


Total dividend (Month): £2.25

Total dividend (6 month): £2.25

Amount for charity (6 month): £0.56


We received two dividend from Brookfield Renewable Partnership this month. First being a normal dividend of £0.03 and then this dividend. This dividend is slightly different as it was received from a Demerger. BEP merged successfully with Terraform power. Each BEP unit holder as of July 27th will receive one class A voting share of BEPC for ever 4 BEP units held [4].


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General account summary


As of writing this blog the portfolio value is £387.82, currently down £5.84 (-1.48%). Our account value has been swinging from positive too negative but these bumps are rode out with the passive income through dividends. As we start into the new month it shall be interesting to see what kind of dividends we will receive in the portfolio.

Hopefully we can smash the first half donation to charity.


Now we are holding 50 stocks inside the portfolio we should get a steady dividend stream which we can build up over time and compound.

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What is:

P/E ratio EPS Payout ratio BETA Dividend


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Trading212 referral


[1] https://www.theguardian.com/technology/2020/jun/22/apple-ditches-intel-for-arm-processors-in-big-sur-computers

[2] https://uk.finance.yahoo.com/news/shareholder-action-notice-schall-law-134400194.html

[3] https://www.bizjournals.com/sanjose/news/2020/07/24/intel-delays-7nm-chips.html


[4] https://bep.brookfield.com/press-releases/2020/07-29-2020-164509659



 

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