Qualcomm Inc. (QCOM) just declared $0.62 quarterly dividend. This is an increase of 9.0% from $0.57.
I own 62 shares, so this will increase my annual dividend income by $12.40 to a total of $5,138.38
I don’t know about you, but I feel like all the companies in my portfolio are raising their dividend in the high single-digit area or some kind of double-digit raise. I am loving it. Actually, the way the year has been going with all these amazing dividend raises and me investing a lot of capitals, I think I will reach and pass my goal of having a forward dividend of $6000 by the end of this year.
QCOM has a dividend payout ratio of 82.8% based on 2017 earnings. This is very high for this company when it tends to be between 30%-50% for the past 9 years. This does not concern me at the moment because analysts expect earnings to start picking in the fiscal year 2019 and beyond.
I find that the company is currently fair valued to slightly overvalued. Therefore, I give this stock a HOLD recommendation.
I do not plan to add any more shares of QCOM at the moment; however, If I do see a significant price drop, I may consider adding more shares. I do have other companies that I am currently looking at and that I find more attractive at the moment, so please stay tuned and make sure to follow me for more information.
What do you think of the company and its recent dividend increase?
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