Intel CEO Pat Gelsinger is now two years into his turnaround efforts, and investors should start seeing tangible results within a year or two.Computer processors giant Intel has been hanging out in Wall Street’s bargain bin for quite a while. Archrival Advanced Micro Devices is stealing market share in key markets, and Intel’s attempts to gain a foothold in mobile devices never gained traction.
Meanwhile, on multiple valuation measures, Intel’s stock is trading below its 10-year and five-year averages. On top of that, the stock was recently offering a fat dividend yield of 5.2%. Long-term investors might want to take a closer look at Intel. After you make an investment, it will often rise or fall in value, giving you a gain or loss. You “realize” the gain or loss when you sell it. Until then, it’s “unrealized.
But you might want to hold those stocks if the companies seem to be performing well, increasing their revenue and earnings over time. Dividends are terrific, but many great companies pay small or no dividends, especially if they’re reinvesting profits to further their growth. And lots of strong stocks will head south or be stagnant for a while — especially when the overall market experiences a downturn.
Many index funds have extremely low fees, too, so they can perform just about as well as their underlying indexes. The SPDR S&P 500 ETF, for example, charges just 0.095% annually — or about $9.50 per year for every $10,000 you invest in it.