Qualcomm Increases Quarterly Dividend

Semiconductor company's stock now offers 2.07% yield

Qualcomm Inc. revealed on Tuesday its plans to raise its quarterly dividend, positioning the semiconductor company’s stock as one of the top yielders in the technology sector, surpassing the 2% mark.

Increase in dividend payout

The quarterly dividend will see a 6.3% increase, rising to 85 cents a share from the previous 80 cents a share. This update will take effect for dividends paid out after March 21.

Stock performance and implications

Despite a 1.2% decline in morning trading following Monday's two-year closing high, Qualcomm's new annual dividend rate of $3.40 per share translates to a dividend yield of 2.07%. In comparison, the Technology Select Sector SPDR ETF XLK boasts a yield of 0.70%, with the S&P 500 index SPX at 1.41%.

Ranking in the tech-sector

Within the tech-sector ETF, Qualcomm's stock ranks as the 12th highest yielding among the 64 equity components.

Commitment to investors

"We are pleased to announce an increase in our quarterly dividend," affirmed Chief Executive Christiano Amon. "We remain committed to returning capital to stockholders through a balanced capital return policy, including a baseline of anti-dilutive stock repurchases."

Capital returns and stock repurchases

During the fourth quarter, Qualcomm allocated $895 million towards dividend payments and repurchased $784 million worth of common stock. The company maintains around $4.4 billion remaining in its stock repurchase program, accounting for 2.4% of Qualcomm's market capitalization of $183.8 billion.

Stock performance comparison

Over the past three months, Qualcomm's stock has surged by 25.9%, surpassing the tech-sector ETF's advancement of 12.4% and the S&P 500's growth of 11.7%.