QUALCOMM Reaffirms Dividend Commitment Amid Share Price Growth and Positive Earnings Report

QUALCOMM recently confirmed a quarterly dividend of $0.89 per share, boosting its stock price by 12%. The company's consistent dividend policy and strong earnings report contributed to its performance, despite mixed market movements. Analysts expect revenue growth of 2.4% annually over the next three years and earnings of $11.6 billion by 2028. QUALCOMM's share price is slightly below the consensus analyst price target of $174.88, indicating a potential upside of 14.60%.

SAN DIEGO, July 2, 2025 — Qualcomm Incorporated (NASDAQ: QCOM) recently announced a quarterly cash dividend of $0.89 per common share, payable on September 25, 2025, to stockholders of record as of September 4, 2025 [1]. This dividend marks the company's 22nd consecutive year of dividend increases and is part of its regular capital return program to shareholders. The dividend announcement has contributed to a 12% boost in the company's stock price, despite mixed market movements.

Qualcomm's consistent dividend policy and strong earnings report have been key drivers of its performance. The company's annual dividend of $3.56 per share represents a 2.33% yield, highlighting its strong financial health and commitment to shareholder returns. The dividend announcement comes as Qualcomm continues to expand its market share in 5G technology components, a key growth area for the semiconductor industry.

Analysts expect Qualcomm to achieve revenue growth of 2.4% annually over the next three years, with earnings projected to reach $11.6 billion by 2028. However, the company's stock price remains slightly below the consensus analyst price target of $174.88, indicating a potential upside of 14.60%. This discrepancy may be attributed to ongoing market scrutiny and challenges related to Qualcomm's smartphone market associations.

Recent developments, including Qualcomm's acquisition of Alphawave IP Group plc, have further highlighted the company's strategic moves. The acquisition, valued at approximately $2.4 billion, is expected to close in the first quarter of 2026 and represents a significant premium over Alphawave's previous share price. Analysts from Jefferies and Deutsche Bank have downgraded Alphawave's stock rating from "Buy" to "Hold," aligning their price targets with Qualcomm's offer.

Despite these developments, Qualcomm remains a compelling investment choice, according to some analysts. Bernstein SocGen Group reaffirmed an "Outperform" rating and a $185 price target, while Loop Capital maintains a "Hold" rating with a price target of $155. These ratings highlight the potential for revenue increases if Qualcomm retains a significant market share in Apple's modem supply chain.

In conclusion, Qualcomm's recent dividend announcement and strong earnings report have contributed to a boost in its stock price. However, the company's stock remains undervalued compared to analyst price targets, indicating potential upside. Investors should continue to monitor Qualcomm's strategic moves and market performance as the company navigates the complexities of the semiconductor industry.

References:
[1] https://finance.yahoo.com/news/qualcomm-announces-quarterly-cash-dividend-130000701.html
[2] https://www.businesswire.com/news/home/20250718674226/en/Qualcomm-Announces-Quarterly-Cash-Dividend
[3] https://www.investing.com/news/company-news/qualcomm-declares-089-quarterly-dividend-payable-in-september-93CH-4141844