Are You An Income Investor? Don’t Miss Out On QUALCOMM Incorporated (NASDAQ:QCOM)
There is a lot to be liked about QUALCOMM Incorporated (NASDAQ:QCOM) as an income stock, over the past 10 years it has returned an average of 2.00% per year. The company is currently worth US$88.65B, and now yields roughly 4.15%. Should it have a place in your portfolio? Let’s take a look at QUALCOMM in more detail. View our latest analysis for QUALCOMM
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it the top 25% annual dividend yield payer?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How well does QUALCOMM fit our criteria?
QUALCOMM has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of QCOM it has increased its DPS from $0.64 to $2.48 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes QCOM a true dividend rockstar. Relative to peers, QUALCOMM generates a yield of 4.15%, which is high for Semiconductor stocks.
Next Steps:
Taking into account the dividend metrics, QUALCOMM ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three essential factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for QCOM’s future growth? Take a look at our free research report of analyst consensus for QCOM’s outlook.
Valuation: What is QCOM worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether QCOM is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
