Technology giant Qualcomm (QCOM) has raised its quarterly dividend by 3%.
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The semiconductor maker declared a quarterly dividend of $0.92 per share, a 3.4% increase from the previous dividend of $0.89. Going forward, QCOM stock will boast a dividend yield of 2.74%, one of the highest among large-cap technology companies.
The new dividend is payable on June 25 to shareholders of record as of June 4 this year. The latest dividend increase from Qualcomm comes with its stock flat (down 0.61%) over the past year as investors turn away from the AI trade over concerns about spending levels.
Other Issues Facing QCOM Stock
Analysts and investors are also cautious on QCOM stock due to concerns about the company’s handset business and future growth prospects. Several analysts on Wall Street have downgraded the stock in recent months.
JPMorgan Chase (JPM) just downgraded QCOM stock to a Hold-equivalent neutral rating from overweight previously, and lowered its price target on the shares to $140 from $185. JPMorgan cited increased competitive intensity in the data center market and near-term headwinds for the company’s smartphone business.
Is QCOM Stock a Buy?
Qualcomm stock has a consensus Hold rating among 28 Wall Street analysts. That rating is based on eight Buy, 17 Hold, and three Sell recommendations issued in the last three months. The average QCOM price target of $153.12 implies 13% upside from current levels.
