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Qualcomm Ups Its Dividend and Buyback Programs
From the Buzz & Banter: The semiconductor company expresses confidence in its future prospects.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

It's funny: When Qualcomm (NASDAQ:QCOM) announced this morning that it was increasing its buyback program by $5 billion and raising its dividend by 20%, I had a strong feeling of deja vu.

Turns out, it was for good reason. On March 5, 2013, Qualcomm announced a $5 billion buyback and increased its dividend by 40%.

Qualcomm had $2.8 billion on its prior buyback program, bringing its total authorization up to $7.8 billion.

The company's quarterly dividend goes to $0.42 from $0.35 for an annual yield of 2.3% based on yesterday's close.

Qualcomm is reacting very positively to the news, trading up 3%.

I'm quite interested in how the company's results shape up over the next few quarters, given the apparent slowdown in the smartphone and tablet markets, though to be fair, there are offset forces at play such as market-share gains, exposure to high-growth emerging markets, technological advantages, and so forth.

Additionally, under the concept of signal theory (where increases in dividends and buybacks are signals of management confidence in near-term prospects), Qualcomm must be feeling good about something.

Still, just this morning, retailer RadioShack (NYSE:RSH) said it is closing 1,100 US stores after an extremely tough holiday season. Same-store-sales were down 19% as a result of "traffic declines and soft performance in the mobility business." That would make sense as Apple (NASDAQ:AAPL) disappointed on iPhone numbers and Samsung (OTCMKTS:SSNLF) has been soft on the high end. Additionally, US carriers have resorted to cutting prices and basically buying customers from each other -- clear signs of maturity.

However, Qualcomm tends to be a relatively steady ship, so it's pretty much a wash. Additionally, revenue growth expectations seem fairly modest -- 8% this year (ending September 2014) and 9% next year.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Qualcomm Ups Its Dividend and Buyback Programs
From the Buzz & Banter: The semiconductor company expresses confidence in its future prospects.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

It's funny: When Qualcomm (NASDAQ:QCOM) announced this morning that it was increasing its buyback program by $5 billion and raising its dividend by 20%, I had a strong feeling of deja vu.

Turns out, it was for good reason. On March 5, 2013, Qualcomm announced a $5 billion buyback and increased its dividend by 40%.

Qualcomm had $2.8 billion on its prior buyback program, bringing its total authorization up to $7.8 billion.

The company's quarterly dividend goes to $0.42 from $0.35 for an annual yield of 2.3% based on yesterday's close.

Qualcomm is reacting very positively to the news, trading up 3%.

I'm quite interested in how the company's results shape up over the next few quarters, given the apparent slowdown in the smartphone and tablet markets, though to be fair, there are offset forces at play such as market-share gains, exposure to high-growth emerging markets, technological advantages, and so forth.

Additionally, under the concept of signal theory (where increases in dividends and buybacks are signals of management confidence in near-term prospects), Qualcomm must be feeling good about something.

Still, just this morning, retailer RadioShack (NYSE:RSH) said it is closing 1,100 US stores after an extremely tough holiday season. Same-store-sales were down 19% as a result of "traffic declines and soft performance in the mobility business." That would make sense as Apple (NASDAQ:AAPL) disappointed on iPhone numbers and Samsung (OTCMKTS:SSNLF) has been soft on the high end. Additionally, US carriers have resorted to cutting prices and basically buying customers from each other -- clear signs of maturity.

However, Qualcomm tends to be a relatively steady ship, so it's pretty much a wash. Additionally, revenue growth expectations seem fairly modest -- 8% this year (ending September 2014) and 9% next year.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Michael Comeau
Qualcomm Ups Its Dividend and Buyback Programs
From the Buzz & Banter: The semiconductor company expresses confidence in its future prospects.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MV PRO+.

It's funny: When Qualcomm (NASDAQ:QCOM) announced this morning that it was increasing its buyback program by $5 billion and raising its dividend by 20%, I had a strong feeling of deja vu.

Turns out, it was for good reason. On March 5, 2013, Qualcomm announced a $5 billion buyback and increased its dividend by 40%.

Qualcomm had $2.8 billion on its prior buyback program, bringing its total authorization up to $7.8 billion.

The company's quarterly dividend goes to $0.42 from $0.35 for an annual yield of 2.3% based on yesterday's close.

Qualcomm is reacting very positively to the news, trading up 3%.

I'm quite interested in how the company's results shape up over the next few quarters, given the apparent slowdown in the smartphone and tablet markets, though to be fair, there are offset forces at play such as market-share gains, exposure to high-growth emerging markets, technological advantages, and so forth.

Additionally, under the concept of signal theory (where increases in dividends and buybacks are signals of management confidence in near-term prospects), Qualcomm must be feeling good about something.

Still, just this morning, retailer RadioShack (NYSE:RSH) said it is closing 1,100 US stores after an extremely tough holiday season. Same-store-sales were down 19% as a result of "traffic declines and soft performance in the mobility business." That would make sense as Apple (NASDAQ:AAPL) disappointed on iPhone numbers and Samsung (OTCMKTS:SSNLF) has been soft on the high end. Additionally, US carriers have resorted to cutting prices and basically buying customers from each other -- clear signs of maturity.

However, Qualcomm tends to be a relatively steady ship, so it's pretty much a wash. Additionally, revenue growth expectations seem fairly modest -- 8% this year (ending September 2014) and 9% next year.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in AAPL
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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