Q I see that the semiconductor company Intel suspended its dividend in August. What does that mean? Is Intel to be avoided?

— C.S., Warren, Ohio

A Many companies elect to pay dividends once they’ve become financially capable of sustaining them, with relatively reliable earnings. Managements never want to reduce or stop dividend payments, as that will signal trouble, but sometimes they have little choice.

Intel has been struggling in recent years, in part due to missed opportunities, manufacturing delays and growing competition. It’s working on turning itself around, and many have high hopes for its newer energy-efficient chips, but the company may not return to its former level of glory. In the meantime, by suspending its dividend payments, it can spend that money on growth initiatives.

If you’re interested in investing in Intel, read a lot more about the risks and opportunities it faces.

Q What’s the “rule of 40”?

— P.M., Houston

A It’s meant to be a quick way to evaluate whether a software company — especially a software-as-a-service (SaaS) company — is attractive. The rule suggests adding the annual revenue growth rate of a company and its net profit margin to see if the total is 40 or higher. So a company with 30% annual revenue growth and a 15% profit margin would have a score of 45, which would pass, while it wouldn’t pass with only a 5% profit margin.

The rule balances revenue growth and profitability, allowing strength in one to make up for weakness in the other. This can help you assess younger companies that are not yet very profitable. But following the rule rigidly might lead you to ignore an attractive business that’s on its way to greatness.

As interest rates have begun inching down, many who were putting off buying a home may now be house-hunting. If that’s you, here are some money-saving tips.

Check your debt >> Pay off any high-interest-rate debt, such as that from credit cards. Any other debt should be manageable; calculate your debt-to-income ratio by dividing your total monthly debt payments (including credit cards, car loans, student loans and current housing payments) by your monthly pretax income. The lower the better, in the eyes of lenders — 36% or less is reasonable, while above 50% is problematic.

Have an emergency fund ready >> Sock away several months’ worth of living expenses to support you if you run into temporary financial trouble. You don’t want to jeopardize your mortgage payments.

Check your credit score >> Lenders offer the lowest mortgage interest rates to those with high scores. That can save you many thousands of dollars. It’s worth spending time boosting a low score — chiefly by paying down debts and paying bills on time — before applying for a loan.

Have a solid down payment >> Aim for a down payment of around 20%. Yes, you can buy a home with very little down, but that can be risky. You’d likely need to pay for private mortgage insurance, and if your home value dropped a bit, you could end up owing more than it is worth.

Buy only as much home as you can afford >> Make sure you won’t be devoting too much of your income to your mortgage. One guideline is to spend no more than 28% of your gross monthly income, though that can be hard in some pricey real estate markets. Remember that you’ll likely have to pay thousands of dollars in closing costs, and that you’ll be on the hook for home insurance, property taxes, home upkeep and repairs and so on — don’t stretch yourself too thin.

It’s also smart to hire an experienced real estate agent to help you through the process.

My best financial decision was buying 100 shares of Facebook — now Meta Platforms — at $42 apiece, despite the objections from my financial adviser. I still own the shares and expect Meta to grow even further.

— W.P., via email

The Fool responds >> Bravo! Meta Platforms has been a terrific performer for a long time, recently averaging annual gains of 25% over the past five years and more than 21% over the past decade. Its stock price soared more than 180% in 2023 (compared to a very respectable 27% for the S&P 500 index), though of course no one should expect such high performance each year. It recently sported a market value near $1.4 trillion.

You aren’t alone in expecting great things from the company, which changed its name to reflect its operations beyond its flagship social media site. Meta Platforms now encompasses Messenger, Instagram and WhatsApp, among other services. It’s also investing in artificial intel

ligence while expanding into immersive technology via augmented, virtual and mixed reality.

It’s a giant in digital advertising, serving more than 3 billion people each day. That huge network gives it many opportunities to grow in different directions. Still, a rosy future isn’t guaranteed, and various growth initiatives may not pan out.

(Do you have a smart or regrettable investment move to share with us? Email it to TMFShare@fool.com.)

I trace my roots back to the late 1800s, when two companies were producing agricultural equipment powered by steam instead of horses. They merged in 1925, forming me. I introduced a diesel-engine tractor in 1931. In 2022, I moved my headquarters from Deerfield, Illinois, to Irving, Texas. Recently valued near $190 billion, I’m a top maker of construction and mining equipment, industrial gas turbines and diesel-electric locomotives, among other things. My brands include Progress Rail, Solar Turbines, Perkins and SEM. I employ more than 110,000 people globally. My ticker symbol could scratch you. Who am I?

Last week’s trivia answer

I trace my roots back to the establishment of a brewery in England in 1777. In 1946, the founder of Pan American Airways (“PanAm”) launched a luxury hotel brand bearing my formal name. The Holiday Inn brand launched in 1952 and was the first hotel brand to franchise, in 1954. These and other hotel chains — such as Crowne Plaza and Candlewood Suites — have ended up under my roof today. I’m now one of the world’s biggest hotel companies, encompassing more than 6,400 hotels with more than 950,000 rooms and employing about 375,000 people. Who am I? (Answer: IHG Hotels and Resorts)

The rapid adoption of artificial intelligence is changing how people interact with devices — even their cars. SoundHound AI (Nasdaq: SOUN) is still a small company, but it’s emerging as a leader in voice recognition technology. It’s poised for substantial growth, with over 155 patents and an impressive list of customers that includes major brands in the restaurant, auto and tech industries.

Its product SoundHound Chat AI is already providing conversational voice assistance in many devices; its voice recognition technology combines with leading large language models like OpenAI’s ChatGPT to deliver comprehensive answers to questions. Validation of its technology can be seen in its growth so far, with revenue up 54% year over year in the second quarter.

The company is looking to expand across several industries, including health care and insurance. To accelerate its market expansion, it just bought a leading enterprise AI software provider, Amelia, for $80 million. It also has a valuable partnership with AI chip leader Nvidia to provide generative-AI chat capabilities in cars powered by Nvidia Drive.

The stock has been volatile since it went public in 2022, but its recent market cap of just $1.9 billion might significantly undervalue its opportunity in a generative AI market that Statista projects will reach $356 billion by 2030. If you’re a risk-tolerant long-term investor seeking a small-cap stock with wealth-building potential, you might want to take a closer look at SoundHound AI.