Intel Raising Its Quarterly Cash Dividend 12.5%

In another sign of the rebounding tech sector, Intel (INTC) announced Monday that its board of directors has approved a 12.5% increase in the co.’s quarterly cash dividend to 15.75 cents per share, up from 14 cents (63 cents per share on an annual basis). The Santa Clara, Calif.-based chip maker said that the new dividend amount will begin with the payout scheduled for the first quarter of 2010.

“With one of the highest dividend yields in the technology industry, the dividend increase is another sign of our confidence in business prospects going forward,” Intel CEO Paul Otellini said in a statement.

Last week, Intel, who has paid out approximately $16.6 billion in cash dividends to its stockholders since 1992, agreed to pay rival Advanced Micro Devices (AMD) $1.25 billion to settle all outstanding long-running legal disputes. AMD had argued for several years that Intel used illegal means to preserve its 80% share of the global market for CPUs, which are the brains of personal computers.

Intel cash dividends for the first through third quarters of 2009 total approximately $2.3 billion.

Shares of Intel rose 39 cents, or 2%, to $20.21 in morning trading Monday.

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