Wireless technology company Qualcomm Incorporated (NASDAQ: QCOM) recently announced a quarterly dividend of $0.75 per share, a 10% increase from the previous dividend of $0.68.
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Following the news, shares of the company rose 4.2% on Wednesday. The stock pared its gains slightly to close at $156.10 in the extended trading session.
The increased dividend will be effective for quarterly dividends payable after March 24, 2022.
The company’s annual dividend of $3 per share now reflects a dividend yield of 1.9% based on Wednesday’s closing price.
The company has been raising its dividend consistently over the past three years, making it an attractive choice for investors.
Management Commentary
The CEO of Qualcomm, Cristiano Amon, said, “We are pleased to announce an increase in our quarterly dividend. Given our long-term earnings growth expectations we provided at Investor Day, we remain committed to returning capital to stockholders through a balanced capital return policy, including a baseline of anti-dilutive stock repurchases, and strong dividend growth with an annualized target of high-single-digit to low-double-digit growth.”
Stock Rating
Recently, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on the stock with a price target of $210, which implies upside potential of 33.7% from current levels.
Consensus among analysts is a Moderate Buy based on 12 Buys and 5 Holds. The average Qualcomm stock prediction of $219.06 implies upside potential of 39.4% from current levels. Shares have gained 22.9% over the past year.
Positive News Sentiment
News Sentiment for QCOM is Very Positive based on 33 articles over the past seven days. 88% of the articles have Bullish sentiment, compared to a sector average of 63%.
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