Qualcomm Boosts Dividend, Announces Share Buybacks (QCOM)

in ceo Gold Gold Investment by admin — March 2, 2010 7:08 am | no comments

Wireless chipmaker Qualcomm, Inc. ( QCOM ) said Tuesday that it would increase its quarterly dividend by 12%, and has initiated a new $3 billion share buyback program. The company said its board approved a quarterly dividend increase from 17 cents to 19 cents per share, effective after Mar. 28. On an annualized basis, the new dividend will pay 76 cents per share to shareholders each year. Effective immediately, the company has also begun a new $3 billion share repurchase program, which follows $1.7 billion in recent share repurchases. The program has no expiration date. CEO Dr. Paul E. Jacobs said that “The strength of our business model is enabling significant investments in our strategic business initiatives while returning capital to stockholders.” Qualcomm shares rose $1.17, or +3.3%, in premarket trading Tuesday. The Bottom Line We had removed shares of QCOM from our “recommended” list back on Sept.25, when the stock traded at $46.54. The company has a dividend yield of 2.14%, based on last night’s closing stock price of $35.56. The company has technical support in the $33 price area. If the shares can continue to rebound, we see near-term overhead resistance around the $40-$42 price levels. We would remain on the sidelines for now. Qualcomm, Inc. ( QCOM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list