By Tom Dyson in the 12% Letter:

The European Competition Commission announced Intel (Nasdaq: INTC) would pay $1.45 billion in fines this week for anticompetitive behavior. That sounds like a lot of money, but Intel holds over $10 billion in cash and has less than $2 billion in debt. The market thinks Intel can afford this fine. Intel's stock rose half a percent after the announcement came out.

I love Intel as an income investment. It produces $6 billion in free cash flow (FCF) each year with a market cap of $85 billion. That's a 7% FCF yield. Its business is almost impossible to compete with and it's trading near 12-year lows. As long as we hold Intel, we should make at least 10% a year.

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