Qualcomm (QCOM): Chips, Dividends, and Steady Growth
Making tech for the world—and paying shareholders along the way
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Intro
💡 Invest in companies you believe in - W. Buffett
Let’s be honest: microchips aren’t flashy. They’re not Teslas, not Apple gadgets, not AI hype. But here’s the truth: some of the “behind-the-scenes” businesses are the ones that really make investors money.
Take Qualcomm. They make the chips that power smartphones, 5G networks, and countless devices. Not glamorous — but essential. And essential businesses tend to keep paying shareholders year after year.
Even through market swings, Qualcomm’s steady dividends make it a stock worth keeping on your radar.
History of the Company
Qualcomm was founded in July 1985 by seven visionaries — Irwin Jacobs, Andrew Viterbi, Franklin Antonio, Adelia Coffman, Andrew Cohen, Klein Gilhousen, and Harvey White — all former Linkabit engineers. The name Qualcomm itself comes from “QUAlity COMMunications.” In its early days, Qualcomm started as an R&D firm contracting for government and defense projects, but its breakthrough came in 1988 when it launched OmniTRACS, a satellite communication system for tracking and messaging in trucking fleets.
Using the profits from OmniTRACS, Qualcomm poured money into research on CDMA (Code‑Division Multiple Access) – a then-experimental wireless technology that would later become a cellular standard.
In September 1991, Qualcomm went public to fund the mass production of CDMA-based phones, base stations, and infrastructure. During the 1990s it faced losses from its heavy R&D spending, but by the mid‑90s CDMA networks began to be deployed commercially, helping Qualcomm turn the corner.
In the 2000s, Qualcomm restructured: it spun off less-profitable divisions and doubled-down on its patent licensing business and chip design. Over time, the company became a powerhouse in wireless technology, securing a dominant role in 3G, 4G, and later 5G, largely thanks to its strong patent portfolio.
A Proven Dividend Eagle🦅
Qualcomm pays a quarterly cash dividend — as of now, it’s $0.89 per share. That adds up to roughly $3.56 per share per year, giving a yield of around 2.05%.
The company has been steadily raising its dividend: in March 2025, Qualcomm bumped it up from $0.85 to $0.89. Their long-term track record shows consistent growth — according to Dearborn Partners, that was the 21st consecutive annual dividend increase.
When it comes to sustainability, the payout ratio (how much of its earnings Qualcomm pays out as dividends) is moderate. Based on trailing earnings, it’s about 72.8%, but based on estimates for next year it drops to around 36%.
On top of dividends, Qualcomm also returns capital via share buybacks, which helps boost total shareholder returns.
🟢 Current Dividend Yield 2.14% lower than 10 Years Average 2.39% Dividend Yield.
In the MaxDividends app, open the 10-year yield band and set a price/yield alert to ping you when it drifts back into your buy zone.
🟢 Current Payout Ratio 69.4%
That’s a healthy level — Qualcomm covers its dividends solidly, but there’s still room for growth. A payout ratio under 70% usually signals that dividends are sustainable without draining future earnings. In the MaxDividends app, check the Payout Safety gauge and the forward payout view to double-check before you add or reinvest.
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Companies featured on the Dividend Eagles list have a proven track record of regular and increasing dividend payouts. This ensures you receive a reliable income, whether you’re planning for retirement or seeking additional cash flow.
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Beyond dividends, these companies often exhibit strong fundamentals and growth prospects. Investing in them not only provides income but also the opportunity for your investment to grow over time.
This is how we build our own growing passive income and long-term wealth.
Key Institutional Investors in Qualcomm (QCOM)
Qualcomm enjoys solid institutional backing, which shows that big players trust its long-term business model and cash flow strength. As of the latest filings:
Vanguard Group, Inc. holds around 10.3% of QCOM.
BlackRock, Inc. owns about 8.9% of the company.
State Street Global Advisors controls roughly 4.8–5.0%
What Makes Qualcomm Stand Out?
Qualcomm Incorporated (NASDAQ: QCOM)
Financial Score: 98 / 99 ⭐️⭐️⭐️⭐️⭐️
Industry: Semiconductors
Dividend Increase - 21 Years
👉 Learn more about Financial Score
Qualcomm isn’t just about building chips — it’s a powerhouse at the heart of wireless tech, with a brilliant two‑part business that keeps money flowing in from different angles.
On one side, there’s QCT: Qualcomm’s fabless chip division that designs and sells Snapdragon processors, modems, and RF parts for smartphones, cars, IoT devices, and more.
On the other, there’s QTL, Qualcomm’s licensing arm: it earns royalties from its huge library of patents in 3G, 4G, and 5G — so even if someone doesn’t buy its chips, they still pay Qualcomm for using its tech.
Here’s the twist: Qualcomm is more like a “wireless‑tech IP engine” than a traditional semiconductor company. Its patents are deeply embedded in the world’s telecom standards, giving it recurring, high-margin royalty income.
Meanwhile, its QCT business keeps innovating — Snapdragon chips now power not just phones, but cars, wearables, and edge‑AI devices. This combo—big licensing cashflows plus a scalable, high-growth chip business—lets Qualcomm invest heavily in R&D while maintaining a strong, diversified revenue base.
Qualcomm Incorporated - Quick MaxDividends Team Overview
🟢 The company is currently profitable, according to the latest reports.
🟢 Rising sales figures confirm that the company is executing well and capturing demand.
🟢 Profitability has improved year after year — a clear sign of smart strategy and execution.
🟢 Strong upward trend in EPS. That’s what you want to see as a long-term investor.
🟢 Overall, things look solid — stable income and financial strength.Historical Context
Qualcomm Incorporated (QCOM) has maintained a consistent quarterly dividend schedule for years. Most recently:
Dividend: $0.89 per share, declared July 18, 2025, ex‑dividend date September 4, 2025, payment date September 25, 2025.
Previous dividend: $0.89 per share, paid after the ex‑dividend date June 5, 2025 (with payment June 26, 2025).
These regular payments reflect Qualcomm’s commitment to returning cash to shareholders while supporting long‑term dividend growth
With MaxDividends App, it’s easier than ever to access top dividend companies, track your results, and explore new dividend ideas.
Financial Statement
👉 The latest fiscal figures for Qualcomm Incorporated show solid operational strength, though some caution points emerge in profitability:
Revenue for FY 2025 reached $44.28 billion, up from $38.96 billion in FY 2024.
Net profit after tax for FY 2025 dropped to $5.54 billion, compared with $10.14 billion in FY 2024.
Operating income (EBIT) stood at $12.355 billion, with a margin of about 27.9% of revenue. (Derived from user‑provided table)
Gross profit was $24.546 billion, yielding a gross margin of approximately 55.4%. (Derived from user‑provided table)
📱 In the MaxDividends app this snapshot helps illustrate how Qualcomm leverages its large scale and diversified revenue (chips + licensing) to generate meaningful earnings. However, the drop in net income suggests that investors should check non‑recurring items, tax charges or one‑off impacts to fully understand sustainability of earnings and dividend coverage.
If you want to stay on top of your portfolio’s health, don’t forget to check in on the financials of the companies you’ve invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they’re performing.
The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.
👉 Learn More about Financial Score
Our Premium Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like Qualcomm are on that list, too.
Future Growth Prospects for Qualcomm
Qualcomm is betting big on more than just smartphones — its roadmap is packed with ambitious growth engines. At its 2024 Investor Day, the company revealed a vision for an expanded total addressable market (TAM) of around $900 billion by 2030, driven by “edge” computing.
Here are the key growth levers:
Automotive & Digital Chassis: Qualcomm expects its automotive revenue to reach $8 billion by FY2029, powered by its Snapdragon Digital Chassis. Its automotive business is already accelerating: in Q3 FY25, auto revenue grew ~21%. The Digital Chassis platform — covering in-cabin compute, ADAS, and connectivity — is gaining strong OEM traction.
IoT Diversification: Beyond cars, Qualcomm is targeting $14 billion in IoT revenue by FY2029, with big bets on industrial IoT, XR (AR/VR), and other connected devices. IoT is already growing fast: in Q3 FY25 it jumped ~24% year ↗ year.
AI & Edge Computing: Qualcomm leans into on‑device AI — embedding NPU (neural processing) right into its chips — which boosts its relevance in everything from smartphones to ultra-efficient edge devices.
Data Center Ambitions: The company is making a bold move into AI data centers. Through strategic acquisitions (like Alphawave) and its Hexagon-based AI chip designs, Qualcomm is positioning to power inference workloads in a more energy-efficient way.
PCs and XR (Extended Reality): Qualcomm sees a future for its Snapdragon X-series in PCs and is aiming for $4 billion in PC revenue by FY2029. And in XR (augmented/virtual reality), it’s aiming for more than $2 billion by the same year.
With MaxDividends, it’s easier than ever to access top dividend companies, track your results, and explore new dividend ideas.
The MaxDividends Top Stocks List features ~100 of the most reliable dividend companies in the U.S. market, each with 15+ years of consecutive dividend increases. These stocks are carefully selected based on MaxDividends’ strict criteria for consistency and reliability.
Dividend Kings represent the elite tier of dividend growth stocks. With 50+ years of consecutive dividend increases, these companies offer unparalleled income stability, making them a top choice for investors seeking long-term reliability in an unpredictable market.
With 25+ years of consecutive dividend increases, Dividend Aristocrats are among the strongest dividend growth stocks. These companies have a proven track record of not only maintaining but consistently increasing their dividends, often outperforming the broader market over time.
Why Invest in Qualcomm?
Leading player in 5G and wireless chip technology — a major backbone of the connected world.
Proven dividend growth for decades — strong commitment to returning cash to shareholders.
Very healthy free cash flow and disciplined capital allocation: Qualcomm often returns nearly 100% of FCF to investors through buybacks + dividends.
Diversified growth engines: not just phones — big bets on automotive, IoT, edge AI, and data center inference.
Strategic acquisition (Alphawave) bolsters its infrastructure footing for high-performance and low-power AI workloads.
Massive long-term opportunity: Qualcomm projects its total addressable market (TAM) could reach $900 billion by 2030 thanks to on‑device AI, IoT, and automotive.
Strong balance sheet and financial health, making it resilient in volatile tech cycles.
Undervalued potential: some analysts argue the stock is cheap relative to its growth runway, especially given its traction in AI and vehicle markets.
Interesting Fact
Qualcomm didn’t start off by building smartphones — in fact, one of their first big products was OmniTRACS, a satellite-based two-way messaging and tracking system for truck fleets, launched in 1988.
Even more surprising: in 2000, Qualcomm bought SnapTrack, a company that made one of the first GPS‑chip solutions for mobile phones — that acquisition helped lay the groundwork for modern location services and emergency‑911 tracking
Competitors
1. Broadcom Inc (NASDAQ: AVGO)
Financial Score: 98 / 99
Industry: Semiconductors
Broadcom competes with Qualcomm on multiple fronts — from RF (radio frequency) modules, to connectivity, to infrastructure chips. Its strength in networking and data-center components makes it a major opponent in the broader semiconductor market.
2. NVIDIA Corporation (NASDAQ: NVDA)
Financial Score: 99 / 99
Industry: Semiconductors
Qualcomm’s push into AI and edge computing brings it into indirect competition with NVIDIA, which dominates in high-performance AI workloads, data center GPUs, and autonomous driving platforms
Final Thoughts
Qualcomm (QCOM) stands out as a tech dividend play with real staying power:
More than 20 years of consecutive dividend increases, signaling a long-term commitment to shareholders.
A moderate payout ratio — trailing‑12‑month earnings show ~72.8%, and forward estimates drop to around ~36%.
A solid yield for a growth tech company: ~2.05% annual yield.
Strong free cash flow and disciplined capital return: Qualcomm is returning cash not only via dividends but also through buybacks.
Diversified growth avenues beyond smartphones — including automotive chips, IoT, and on‑device AI, making its business less dependent on any single market.
The company is also preparing for next‑generation wireless, with work already underway on 6G, which could unlock entirely new markets.
Key Takeaways
Qualcomm is a good fit for investors looking for steady dividend growth plus long-term upside, rather than just the highest immediate yield.
Its business model balances innovation and cash return — while it’s investing aggressively in future tech, it still delivers reliable income.
For long-term dividend investors, Qualcomm offers a compelling mix: emerging growth in advanced tech + a proven track record of returning capital to shareholders.
Undervalued \ Overvalued \ Fairly Valued
Compare the P/E ratios of competitor companies to assess whether the stock you’re considering is overvalued. We calculate the average P/E among competitors as a benchmark.
If a company’s current P/E is 20% or more below the competitor average, it is considered undervalued.
If it is 20% or more above, it is considered overvalued.
The P/E ratio is calculated by dividing the market value per share by earnings per share (EPS).
Undervalued
Analysts Consensus
Wall Street is broadly bullish on Qualcomm. According to the 17 analysts covering the stock, the consensus rating is a confident “Buy”, backed by an average 12-month price target of $186.94 — implying a solid +14.48% upside from current levels.
Forecasts span a wide range, from a cautious $150 on the low end to an optimistic $225 on the high end, but the overall trajectory leans positive. The median target of $185 reinforces this balanced optimism. In short, analysts expect Qualcomm to keep climbing, supported by strong fundamentals, diversified revenue drivers, and long-term tailwinds in AI, connectivity, and mobile technologies.
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