Investors looking to benefit from QUALCOMM Incorporated's (NASDAQ:QCOM) upcoming dividend distribution have until November 29th to acquire shares to be eligible for the December 14th payment. The company has announced a dividend of $0.80 per share, contributing to an annual total of $3.20. This dividend yield is approximately 2.5% based on the current share price of $127.5.
The sustainability of QUALCOMM's dividends appears robust, with a prudent payout from earnings at 47% and from free cash flow at 35%. This demonstrates the company's adeptness in generating free cash flow, essential for maintaining and potentially increasing dividends. Moreover, QUALCOMM has shown remarkable earnings growth, averaging about 34% annually over the past five years, reflecting strong reinvestment strategies that could further bolster dividend growth.
Historically, the company has consistently increased its dividends, averaging near a 12% rise each year. This trend highlights QUALCOMM's strategic positioning to maintain a low payout ratio while still offering an attractive proposition for investors seeking reliable dividend income.
InvestingPro Insights
Investors considering QUALCOMM Incorporated (NASDAQ:QCOM) for its dividend prospects will find additional encouragement in the company's financial strength and market performance. InvestingPro Data indicates a solid market capitalization of $141.91 billion, with a healthy P/E ratio standing at 17.49 when adjusted for the last twelve months as of Q4 2023. Moreover, QUALCOMM's commitment to shareholder returns is evident in its dividend track record, having raised dividends for 21 consecutive years, a fact that aligns with the company's robust return on assets of 14.46% over the same period.
Two InvestingPro Tips that stand out are QUALCOMM's high return on invested capital and the analysts' positive outlook, with 16 analysts revising their earnings estimates upwards for the upcoming period. These factors, combined with the company's status as a prominent player in the Semiconductors & Semiconductor Equipment industry, provide a compelling narrative for investors.
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