Yesterday, the board of directors of
) raised the quarterly dividend rate by 40% from 25 cents per
share to 35 cents per share, effective immediately. The new
annualized dividend will be $1.40 per share.
The board also replaced the company's existing $4 billion
share repurchase program with a new $5 billion program.
Approximately $2.5 billion of stock repurchase authority is still
remaining in the existing share buy-back program.
Qualcommhas firmly established its leadership position in the
high-end smartphone segment. The company is the majorbeneficiary
to the significant growth of 3G wireless technologies and
smartphones in the emerging markets, China in particular. The
next-generation 4G Long Term Evolution (LTE) technology has also
boosted Qualcomm's market position. The company becomes the major
chipset vendor for global smartphone giants, such as
), Samsung and HTC.
We believe the company's decision to enhance its shareholder
wealth is clearly indicating management's confidence of the
future growth despite facing stiff competition from
At the end of 2012, Qualcomm had more than 225 royalty bearing
licensees throughout the world. Further, the company has over 40
single-mode OFDMA licensees. More than 450 Snapdragon-based
devices are in the pipeline and over 100 devices are based on the
company's Reference Design solutions.
Qualcomm has announced its next-generation processors called
Snapdragon 600 and 800. These chipsets will provide 40-75%
increased performance over the S4 Pro series and are the first
chips operating on TSMC 28nm technology.
Management raised its previous outlook for fiscal 2013 due in
large part to the growing adoption of 4G LTE networks in North
America, rapid transition from 2G to 3G in China and India, and
increasing licensing revenue.Qualcomm currently has a Zacks Rank
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