Semiconductor exchange traded funds bucked the overall market’s downtrend on Wednesday as a dividend hike from Intel (NasdaqGS: INTC) stoked enthusiasm for the sector.
Intel shares were up more than 2%. The chipmaker before Wednesday’s opening bell boosted its quarterly dividend by 16%.
“Worldwide demand for computing continues to increase at a very rapid rate, putting Intel on track for revenue growth of over 20 percent this year, delivering another record year for the company,” said Paul Otellini, Intel chief executive, in a press release. “Intel’s current and projected growth is generating strong cash flow, allowing us to further increase our dividend.”
The stock represents nearly 20% of Semiconductor HOLDRS (AMEX: SMH). The sector ETF is up nearly 13% this year and was fractionally positive Wednesday as the major indicators moved lower.
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