QUALCOMM (QCOM) Dividend Report

Updated 3/13/25

When you think of QUALCOMM, you probably think of mobile chips—and for good reason. This isn’t just another semiconductor company. QUALCOMM has been quietly powering the mobile revolution for decades. Its Snapdragon processors are in millions of devices, and its technology touches everything from smartphones to connected vehicles. But beyond the tech, there’s something else that makes this stock interesting: a steady, reliable dividend that fits well into an income-focused portfolio.

For investors who want tech exposure without giving up yield, QUALCOMM is worth a closer look.

Recent Events

QUALCOMM’s stock has had a bit of a rollercoaster year. While the broader market posted a solid gain, QCOM is down around 4% over the past 12 months. That might seem disappointing on the surface, but it’s important to dig deeper. The company’s fundamentals tell a very different story.

Revenue has grown by 17.5% year-over-year, and earnings are up nearly 15%. That growth has been driven by higher demand for its advanced chipsets, especially as artificial intelligence becomes more embedded in everyday tech. The stock is trading at $160, still well below its 52-week high of $230, but it’s regained some strength recently.

This is the kind of company that doesn’t always make headlines—but it delivers where it counts.

Key Dividend Metrics

📈 Forward Dividend Yield: 2.12%
💵 Forward Annual Dividend: $3.40
📊 Payout Ratio: 36.14%
📅 Next Dividend Date: March 27, 2025
📆 Ex-Dividend Date: March 6, 2025
📉 Five-Year Average Yield: 2.14%
🚀 Dividend Growth Streak: 10+ years

Dividend Overview

QUALCOMM isn’t the first name that comes to mind when people think about dividend stocks, but maybe it should be. With a yield just above 2% and a solid record of dividend increases, this is a company that consistently rewards shareholders.

The yield is right in line with its five-year average, which suggests the stock is fairly valued from an income perspective. It’s not high-yield by any means, but it’s dependable, especially for a tech stock. The dividend payout ratio is sitting comfortably at 36%, which tells you the company has plenty of room to keep paying—and even raising—that dividend.

Dividend Growth and Safety

Consistency is the name of the game here. QUALCOMM has been increasing its dividend for more than a decade, and it’s been doing it in a responsible way.

Cash flow is strong, with nearly $14 billion in operating cash flow over the past year. That kind of income gives the company room to invest in research, buy back stock, and still pay a generous dividend. Levered free cash flow is also solid at $9.74 billion, backing up the safety of the dividend.

The most recent quarterly dividend came in at $0.85 per share. And based on current earnings and free cash flow levels, future increases are very much on the table.

Chart Analysis

Market Phase and Wyckoff Context

The chart of QCOM reflects a completed markdown phase followed by a range-bound reaccumulation zone that hasn’t yet broken decisively upward. The sharp decline from mid-year highs and the failed attempts to retest those levels align with Wyckoff’s markdown characteristics, especially considering the heavy volume on down moves.

Following that selloff, price has been oscillating within a tight horizontal band, forming what appears to be a shallow reaccumulation range. Volume patterns during this time show a gradual decline in intensity, which typically occurs as selling pressure is absorbed by stronger hands. The 50-day moving average remains below the 200-day, confirming continued technical weakness, although the two are flattening slightly—suggesting a transition is underway rather than a continuation of a steep downtrend.

Key Support and Resistance Levels

QCOM is holding near its recent support level around 150, which has been tested multiple times since late January. This area is acting as a short-term floor. On the upside, there’s visible resistance just above 165, where prior rally attempts were rejected.

Price remains stuck below both the 50-day and 200-day moving averages. Until it can clear at least the 50-day with conviction, short-term strength may be limited. Any break below 150 with volume would invalidate the current accumulation zone structure and signal possible continuation of the markdown.

Volume Behavior

The volume bars reinforce what’s visible in the price structure. Selling spikes were prominent during the drawdowns in June and again in October, followed by quieter, lower-volume periods of sideways action. More recently, volume has dried up as the stock moves laterally—this is typical of Phase B in Wyckoff reaccumulation, where institutions begin absorbing shares in preparation for a markup, but not aggressively enough yet to drive price higher.

What’s missing at this point is a clear sign of strength—a high-volume move through resistance—to confirm the emergence from this base.

RSI Trend

The Relative Strength Index (RSI) has been in a steady downtrend since the summer peak and currently sits in the 30–40 range. This suggests continued bearish to neutral momentum, with no immediate signs of a reversal. It’s notable that even during short rallies over the last few months, RSI failed to break into bullish territory above 60. That reflects the stock’s inability to build real upward momentum.

Until we see RSI turning up with price and a breakout through moving averages, momentum remains on the weak side.

The Last Five Candles

Looking at the latest five candles:

• Each of them shows narrow-bodied daily ranges, with long upper wicks on multiple sessions, indicating persistent selling into strength.
• The candle on the most recent trading day closed at 152.80 after testing a low near 151.92—another lower high and lower low.
• Volume on these candles remains muted, reinforcing that the market is waiting for new direction or that demand is not yet overpowering supply.
• None of the candles show significant bullish reversal formations such as hammers or bullish engulfing patterns.
• The presence of upper wicks points to short-term selling pressure and a market that is being capped at every attempt to rise.

This series reflects indecision with a bearish tilt, as bulls haven’t shown strength, and sellers continue to step in on minor rallies.

Analyst Ratings

📉 In recent months, Qualcomm (QCOM) has seen a mix of analyst upgrades and downgrades, reflecting some uncertainty around its near-term trajectory.

🔻 One recent downgrade came from a major analyst who expressed concern over Apple’s ongoing development of in-house modem chips. Apple has long been a significant revenue contributor for Qualcomm, and the possibility of them reducing reliance on third-party suppliers naturally raises red flags. Combine that with softening demand in the PC space, and you’ve got a cocktail of reasons for a more cautious stance.

📱 Beyond just Apple, there’s a broader worry that smartphone market saturation could weigh on Qualcomm’s top-line growth, especially in developed markets. This skepticism isn’t universal, but it has gained some traction as 5G excitement begins to cool off.

✅ On the flip side, several analysts have maintained bullish positions, pointing to Qualcomm’s strength in mobile chipsets and growing presence in non-handset segments like automotive and edge computing. Some have even cited expanding partnerships with key players in the Android ecosystem, particularly Samsung, as a reason for optimism. These analysts view Qualcomm as a leader in premium tier mobile platforms, which continues to drive solid margins.

📊 Looking at the broader view, the consensus analyst price target currently sits at $205.32. That’s quite a bit above the current share price, suggesting analysts still see upside potential. The most optimistic target is $270.00, while the lowest sits right around $160.00.

🎯 The takeaway from analysts is mixed but leaning constructive. Risks from major customer transitions are real, but Qualcomm’s diversification strategy and technology edge still carry weight.

Earnings Report Summary

Qualcomm’s most recent earnings report painted a picture of a company that’s staying sharp and evolving with the tech landscape. For the quarter ending in December 2024, revenue came in at $11.7 billion, which is a solid 17% jump compared to the same time last year. That kind of top-line growth in this environment is no small feat, and it was mainly driven by stronger demand for AI-enabled smartphones.

On the bottom line, earnings per share landed at $3.41 on a non-GAAP basis, which came in better than expected. A lot of that strength came from their QCT segment—the part of the business that covers chips for mobile devices. That unit alone brought in $10.1 billion in revenue, with handsets contributing $7.6 billion of that total. Automotive revenue also stood out, climbing 61% to $961 million, and their Internet of Things segment wasn’t far behind with a 36% year-over-year increase to $1.5 billion.

Even with all those positives, the market reaction was lukewarm. Shares slipped around 5% after hours, mostly because investors were concerned about softer results in Qualcomm’s licensing business. That side of the business took a hit after an important agreement with Huawei expired, and the outlook there didn’t offer much excitement.

Still, Qualcomm isn’t sitting still. The company’s clearly been working to broaden its footprint beyond just smartphones. You can see that in its push into automotive systems, IoT devices, and AI-powered PCs. Those efforts are starting to show up in the numbers and could help smooth out the bumps when phone demand slows or licensing hits a snag.

For the current quarter, Qualcomm is guiding revenue in the $10.2 to $11 billion range, with projected EPS between $2.70 and $2.90. Those aren’t blowout numbers, but they do show some stability as the company shifts into new growth areas.

All in all, this wasn’t a flawless quarter, but it did show Qualcomm has multiple levers to pull. While the licensing dip is something to watch, the growth in core chip segments and expansion into emerging tech spaces suggest the company is adjusting well to where the market is heading.

Financial Health and Stability

QUALCOMM isn’t just paying dividends—it’s doing so from a strong financial foundation. Cash on hand totals $14.31 billion, nearly enough to cover its total debt of $14.58 billion. That kind of balance sheet strength adds a layer of comfort for long-term investors.

The current ratio is a healthy 2.62, showing that short-term obligations are well covered. Meanwhile, the company’s debt-to-equity ratio of 54.23% is reasonable for a business of this scale.

Profit margins remain impressive, with a net margin of nearly 26% and operating margins topping 30%. What stands out even more is return on equity, which is pushing 42%. That’s a sign of efficient management and a business that’s generating serious value for shareholders.

Valuation and Stock Performance

Let’s talk about the numbers that often get overlooked by dividend investors: valuation metrics.

Right now, QUALCOMM is trading at a forward price-to-earnings ratio of 13.77. That’s pretty attractive, especially in a sector where valuations can get out of hand fast. The trailing P/E is 17.27, still reasonable given the company’s growth rate and margin profile.

Its PEG ratio—a measure of valuation relative to growth—is 1.58. That puts it in the “reasonably priced” category, especially for a company with this kind of cash flow and profitability.

The stock hasn’t kept up with the broader chip rally and is trading below both its 50-day and 200-day moving averages. That may be holding back the price today, but it could also suggest there’s room for upside if sentiment improves.

Risks and Considerations

As steady as QUALCOMM looks, there are a few things investors need to keep in mind.

First, while the company is pushing into new areas, a big chunk of revenue still comes from smartphones. If global handset demand weakens, especially in Asia, that could hit earnings.

There’s also the ongoing issue of geopolitical risk. Tensions between the U.S. and China can create uncertainty, particularly around exports and licensing deals.

Another concern is increasing competition. Apple has already begun designing its own chips, and other OEMs are moving in a similar direction. QUALCOMM has to keep innovating to stay ahead.

Lastly, the stock tends to be more volatile than your average dividend payer. With a beta of 1.29, it moves more than the market. For conservative investors, that might be a point of caution.

Final Thoughts

QUALCOMM isn’t the flashiest stock in the tech world, but it’s one of the most quietly dependable. For investors focused on income, it offers a compelling mix of yield, growth, and financial stability. The dividend is well covered, regularly growing, and supported by a company that’s still very much in growth mode.

It may not grab headlines like some of the high-flying chip names, but QUALCOMM delivers where it counts: in steady, rising income and strong financials. For dividend investors looking for a name in tech that won’t keep them up at night, QUALCOMM stands out as one to watch.