Insight into Qualcomm Inc's Upcoming Dividend Payout and Financial Health
Qualcomm Inc (QCOM, Financial) recently announced a dividend of $0.8 per share, payable on 2024-03-21, with the ex-dividend date set for 2024-02-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Qualcomm Inc's dividend performance and assess its sustainability.
What Does Qualcomm Inc Do?
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
A Glimpse at Qualcomm Inc's Dividend History
Qualcomm Inc has maintained a consistent dividend payment record since 2003, distributing dividends on a quarterly basis. The company has a reputation as a dividend achiever, having increased its dividend annually since 2003. This distinction is reserved for companies with at least 21 consecutive years of dividend increases.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Qualcomm Inc's Dividend Yield and Growth
As of today, Qualcomm Inc currently has a 12-month trailing dividend yield of 2.01% and a 12-month forward dividend yield of 2.05%, indicating an expected increase in dividend payments over the next year. Over the past three years, Qualcomm Inc's annual dividend growth rate was 6.90%. This growth rate decreased to 5.30% per year over a five-year period, while the annual dividends per share growth rate over the past decade stands at 8.50%.
Based on Qualcomm Inc's dividend yield and five-year growth rate, the 5-year yield on cost for Qualcomm Inc stock as of today is approximately 2.60%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2023-12-31, Qualcomm Inc's dividend payout ratio is 0.41, suggesting a balance between distributing earnings to shareholders and retaining funds for future growth.
Qualcomm Inc's profitability rank of 9 out of 10, as of 2023-12-31, indicates strong profitability prospects, with the company having reported net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Qualcomm Inc's strong growth rank of 9 out of 10 suggests that the company has a favorable growth trajectory compared to its competitors. Qualcomm Inc's revenue per share and 3-year revenue growth rate of approximately 15.80% per year outperform about 60.93% of global competitors.
The company's 3-year EPS growth rate further underscores its ability to grow earnings, essential for sustaining dividends, with an average increase of approximately 12.50% per year, outperforming about 37.59% of global competitors.
Investor Takeaway: Qualcomm Inc's Dividend Prospects
In conclusion, Qualcomm Inc's consistent dividend history, growth rates, and balanced payout ratio, coupled with strong profitability and growth metrics, present a compelling case for value investors. The company's ability to adapt and innovate in the dynamic technology sector suggests a positive outlook for future dividend sustainability and growth. For investors seeking dividend-paying stocks, Qualcomm Inc appears to be a solid candidate worth considering for a diversified investment portfolio.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
