Intel raises dividend by 7 percent to 22.5 cents

(AP) -- Intel Corp. is raising its quarterly dividend by 7 percent to 22.5 cents.

The Santa Clara, Calif., company says the higher dividend will be paid for the third quarter, but did not specify when the dividend will be paid. It's the third time the world's largest chip-maker has increased its dividend in the last 18 months.

Intel is dominant in the market for PC processors, supplying the main computing chip for four out of five PCs sold in the world. But it's facing a new challenge from cheap phone-style chips.

The company said last month that its first-quarter net income fell 13 percent on higher research and marketing costs. Revenue was flat from a year earlier.

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