Qualcomm (NASDAQ:QCOM) Shares Up 1.3% After Dividend Announcement

Key Points

• Qualcomm's board raised its quarterly dividend to $0.92 per share (record June 4, payable June 25), up from $0.89, a move that pushed the stock about 1.3% higher and implies a 2.7% yield with a 73.6% payout ratio.
• The company authorized a $20 billion share repurchase plan (about 14.5% of shares), signalling management believes the stock may be undervalued.
• Qualcomm beat Q1 estimates with EPS of $3.50 (vs. $3.38) and revenue of $12.25B, gave Q2 EPS guidance of $2.45–2.65, and sits with a consensus analyst rating of "Hold" and an average target price of $159.91.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price shot up 1.3% during mid-day trading on Friday following a dividend announcement from the company. The company traded as high as $136.97 and last traded at $136.20. 9,569,566 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 11,044,453 shares. The stock had previously closed at $134.47.The newly announced dividend which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a dividend of $0.92 per share. This is an increase from Qualcomm's previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 2.7%. The ex-dividend date is Thursday, June 4th. Qualcomm's dividend payout ratio (DPR) is 73.55%.

Analyst Ratings Changes

Several research firms recently issued reports on QCOM. DZ Bank upgraded Qualcomm to a "strong-buy" rating in a research report on Tuesday, February 10th. Citigroup reissued a "neutral" rating on shares of Qualcomm in a research note on Thursday, January 15th. Wells Fargo & Company raised Qualcomm from an "underweight" rating to an "equal weight" rating and increased their price target for the company from $135.00 to $185.00 in a research note on Tuesday, February 24th. Susquehanna lowered Qualcomm from a "positive" rating to a "neutral" rating and set a $140.00 price target for the company. in a research note on Thursday, February 5th. Finally, UBS Group reissued a "neutral" rating on shares of Qualcomm in a research note on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $159.91.

Qualcomm Stock Performance

The business has a 50 day moving average of $134.50 and a 200 day moving average of $156.67. The company has a market capitalization of $145.33 billion, a P/E ratio of 28.14 and a beta of 1.28. The company has a quick ratio of 1.83, a current ratio of 2.51 and a debt-to-equity ratio of 0.64.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The wireless technology company reported $3.50 EPS for the quarter, beating analysts' consensus estimates of $3.38 by $0.12. The company had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.16 billion. Qualcomm had a return on equity of 44.09% and a net margin of 11.96%.The firm's revenue was up 4.7% on a year-over-year basis. During the same period in the prior year, the company earned $3.41 earnings per share. Qualcomm has set its Q2 2026 guidance at 2.450-2.650 EPS. On average, sell-side analysts predict that Qualcomm Incorporated will post 9.39 earnings per share for the current year.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Board approved a quarterly cash dividend of $0.92 per share (record June 4, payable June 25), which supports income investors and signals confidence in cash flow. Qualcomm Announces Quarterly Cash Dividend
• Positive Sentiment: Qualcomm expanded its XR/mobile AI footprint with a multi‑year deal to supply Snapdragon XR processors to Snap’s Specs unit — strengthens QCOM’s positioning in AI wearables and adjacent compute markets. Qualcomm (QCOM) Makes A Strategic Bet That Could Matter More Than It Seems
• Positive Sentiment: Management is deepening automotive ambitions (direct investment in Wayve; expanded Bosch collaboration) to supply vehicle compute/ADAS platforms — a structural growth avenue beyond smartphones. Qualcomm’s Automotive Push Adds New Layer To QCOM Investment Story
• Positive Sentiment: Some analysts/investors view QCOM as attractively valued relative to fast‑rising peers, arguing the selloff creates a buying opportunity if mobile recovery and new verticals gain traction. Qualcomm: Rare Value In An Otherwise Inflated Sector
• Neutral Sentiment: Balanced bull/bear price‑case pieces highlight that upside depends on handset cycles, RF demand and execution in automotive/AI, so short‑term moves may be volatile. Qualcomm Stock Price Prediction: Bull and Bear Case
• Neutral Sentiment: Longer‑term thesis is mixed in market commentary — some outlets praise positioning while warning industry headwinds could cap near‑term growth. Could Qualcomm Stock be One of the Best Semiconductor Stocks to Buy Today?
• Negative Sentiment: JPMorgan cut QCOM from Overweight to Neutral, placed it on a negative‑catalyst watch and slashed the price target (cites smartphone/visibility concerns) — a high‑profile downgrade that can pressure sentiment and multiple compression. JPMorgan Downgrades Qualcomm and Puts It on Negative Watch: Is the Smartphone Giant’s Best Days Behind It?
• Negative Sentiment: Analyst downgrades and relative underperformance versus peers (QCOM roughly flat over 12 months while peers rallied) keep selling pressure and raise execution expectations. Qualcomm: Rare Value In An Otherwise Inflated Sector

Qualcomm announced that its board has initiated a stock repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to purchase up to 14.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

Insider Activity at Qualcomm

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm's stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the sale, the executive vice president directly owned 30,684 shares of the company's stock, valued at $3,999,352.56. This trade represents a 7.53% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the firm's stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $137.00, for a total value of $438,400.00. Following the completion of the sale, the executive vice president directly owned 16,393 shares of the company's stock, valued at $2,245,841. The trade was a 16.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 9,118 shares of company stock valued at $1,233,705 over the last ninety days. Corporate insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Qualcomm

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of Qualcomm by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 114,144,068 shares of the wireless technology company's stock worth $19,524,350,000 after acquiring an additional 647,076 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Qualcomm by 12.5% during the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company's stock worth $4,931,968,000 after acquiring an additional 3,221,924 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Qualcomm by 34.5% during the 4th quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company's stock worth $2,861,301,000 after acquiring an additional 4,290,622 shares during the last quarter. Norges Bank bought a new stake in shares of Qualcomm during the 4th quarter worth approximately $2,591,056,000. Finally, Amundi lifted its stake in shares of Qualcomm by 9.9% during the 3rd quarter. Amundi now owns 12,671,635 shares of the wireless technology company's stock worth $2,136,486,000 after acquiring an additional 1,138,541 shares during the last quarter. 74.35% of the stock is owned by institutional investors.

About Qualcomm

Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.

The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi‑Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.

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