Intel Announces Stock Split, Higher Dividend

Semiconductor manufacturer Intel Corp. Friday announced a two-for-one stock split of its common stock.

The semi-conductor maker will also raise its dividend by one-third.

Stockholders of record on May 19 will be entitled to one additional share of common stock for each share of the common stock held on that date. The new shares will be distributed June 16.

The Intel board also approved an increase in Intel’s quarterly cash dividend from 3 cents per share to 4 cents per share on a post-split basis.

“The stock split will make it easier for individuals to invest in Intel. We have experienced good earnings growth and have sufficient faith in the future to increase the dividend,” said Intel chairman Gordon Moore.

The directors also authorized a common stock repurchase program from 55 million to 110 million shares.

On a post-split basis, about 53.3 million shares of stock have been repurchased and 30.7 million shares remain available for repurchase, after reserving shares to cover outstanding put warrants.

Hedging, speculating much alike

Contrary to sales pitches by brokers selling futures and options deals, hedging vs. speculating is not a clear distinction in terms of investment risk-taking.

If your broker says your investment “is fully hedged,” don’t relax. You’ve paid a price for the hedging strategy, and it can be as wrong as naked speculation.

The two main questions investors should ask are these: Under what conditions will your scheme erode my principal or investment return?

And, after you’ve taken the plunge, what is the value of my investment right now if I want to get out, taking into account trading commissions, hedging premiums, taxes and currency exchange effects as well as current market prices?

Forget about hedging vs. speculating. This is the great lesson of the great derivatives scandals that have consumed the likes of Orange County.

Delegates can deduct costs

You can deduct your expenses for attending a national or regional conference or convention - as an elected delegate.

The IRS specifically allows a deduction for attending conventions of religious, charitable and veterans’ organizations.

The key requirement is that you must be an elected delegate. There is no tax deduction if you simply decide on your own to attend.

Such deductions - including travel, lodging, meals and tips - are available for delegates to foreign as well as domestic conventions.