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Intel Boosts Dividend 7.1 Percent on Smartphone Growth

Intel Corp., the world’s largest chipmaker, increased its quarterly dividend 7.1 percent to 22.5 cents as it anticipates growth in the mobile-phone market may help make 2012 a year of “record revenues.”

“Strong demand in our core business and significant progress in smartphones” will help drive the gains, said Paul Otellini, president and chief executive officer, in a statement today. “This latest dividend increase is one more example of our commitment to return cash to our stockholders.”

Intel expects to be a “big player” in smartphones over the next five years, after debuting its chips in the devices last month, Chief Financial Officer Stacy Smith said at the time. The company is trying to take advantage of the growth in computing through mobile devices to help weather waning demand in personal computers -- where it has more than 80 percent of the market.

Intel’s quarterly dividend increased three times in the last 18 months. The shares fell 0.5 percent to $27.76 at the close in New York. The stock has climbed 14 percent this year.

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