Paul Tracy

It's one of the most lucrative dividend payers on the market.

Dividends per share have increased 110% in the past five years... up 50% in just the past two.

And the company has raised its dividend twice in the past year alone.

That's to speak nothing of the massive amounts of stock the company is buying back -- $10 billion so far this year, with $14 billion more authorized. And it just announced record revenue and earnings for the third quarter.

But I'm betting you haven't even looked at this stock if you're a traditional income investor...

That's because right now, Intel (Nasdaq: INTC) only pays a yield of 3.4%.

Most income investors probably see this yield and don't look twice. But if you're only looking at companies that pay yields of 6% or more, I think you're making a big mistake.

You see, some of the most reliable and lucrative dividend-paying companies don't always offer the biggest yields. That's because more goes into a stock's total return than just the "headline" yield.

Let's take a closer look at Intel. It's the world's largest semiconductor chip maker. It owns 80% of a $30 billion market, according to investment research firm Morningstar.

Intel's business throws off enormous amounts of cash, and the management team is doing everything it can to put a fair share of this money in shareholders' pockets.

Since 2006, Intel has increased its payment 16% annually.

If this pace continues -- and right now there is little reason to think it won't -- just five years from now Intel is probably going to be paying $0.44 per share every quarter, giving today's investors a future yield of 7.3% based on today's purchase price.

But that's not all...