Technology stocks historically haven't been what comes to mind
when investors think of income stocks. But a number of big-cap
techs do pay dividends.
Wireless chip companyQualcomm (
) is one such issue. On Tuesday, the San Diego-based firm
announced a large dividend hike and a new multibillion-dollar
share buyback program.
Qualcomm will raise its quarterly dividend to 35 cents a
share, up 40% from its prior payout of 25 cents. That's one of
its biggest hikes since the company started paying shareholders
dividends back in 2003.
"Our business model continues to generate strong operating
cash flows that enable us to invest in and execute on our
strategic priorities, while also returning capital to
stockholders," said Paul Jacobs, Qualcomm's CEO and chairman, in
a news release.
At the new rate, Qualcomm pays $1.40 on an annual basis. That
gives the stock a yield of about 2.1%, which is lower than that
of Cisco Systems (
) andMicrosoft (
). But Qualcomm offers more robust top- and bottom-line
Qualcomm also unveiled a $5 billion stock repurchase program
Tuesday. The new buyback replaces a $4 billion repurchase plan
that had $2.5 billion remaining. There is no expiration date on
the new program.
In late January, the company
cruised past expectations
with fiscal Q1 earnings that jumped 30% to $1.26 a share.
Sales, which also beat views, grew 29% to $6.02 billion. The
profit and revenue increases were the highest in several
Qualcomm also raised its full-year outlook for earnings and
sales as it issued its Q1 report.