Qualcomm, Inc. Announces a 9% Dividend Increase
Another Dividend Hike from QCOM Stock
In the technology world, QUALCOMM, Inc. (NASDAQ:QCOM) stock stands out due to its generous dividend policy. And now, the company is raising its payout again.
On Thursday, March 8, after the closing bell, Qualcomm, Inc. announced that its board of directors approved a quarterly cash dividend rate of $0.62 per share, representing a nine-percent increase from its previous quarterly payout of $0.57 per share. The increased dividend rate will come into effect after March 21, 2018. (Source: “Qualcomm Increases Quarterly Dividend by 9 Percent,” Qualcomm, Inc., March 8, 2018.)
At the current share price, QCOM stock offers a forward annual dividend yield of four percent, which is quite impressive given that the average S&P 500 company pays just 1.8% at the moment.
Qualcomm also has an impressive track record of dividend growth. Since 2003, the company has raised its payout every single year. (Source: “Dividend/Split History,” Qualcomm, Inc., last accessed March 8, 2018.)
“We are pleased to announce an increase in our quarterly dividend, a reflection of our commitment to returning capital to stockholders,” said Qualcomm’s Chief Executive Officer Steve Mollenkopf in a statement on Thursday. “We look forward to closing the pending acquisition of NXP and expect the strong combined cash profile of Qualcomm and NXP to further strengthen our foundation for future capital returns for our stockholders.” (Source: “Qualcomm Increases Quarterly Dividend by 9 Percent,” Qualcomm, Inc., March 8, 2018.)
Mollenkopf was referring to the company’s pending acquisition of NXP Semiconductors NV (NASDAQ:NXPI), a global semiconductor manufacturer headquartered in Eindhoven, Netherlands. Once the deal is completed, it would boost the combined company’s cash flows and generate significant cost synergies. That could lead to another dividend increase for QCOM stock.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.