Qualcomm (QCOM) Dividend Stock Analysis

Qualcomm Dividend

The Qualcomm (QCOM) dividend has been paid every year since 2003 and increased for 23 consecutive years; qualifying the company as a Dividend Contender.

Current Dividend Annualized: $3.56

Qualcomm (QCOM) Intrinsic Value – Margin of Safety Analysis            

(updated March 2025)

Normalized Diluted Earnings Per Share (TTM): $9.27
Free Cash Flow Per Share (TTM): $11.28
Cash Flow From Operations (CFO) Per Share (TTM): $12.26

Estimated Intrinsic Value: $172

Target Buy Price Based on Required Margin of Safety =  $172
(Required Margin of Safety Based On Risk Stability Grade:

A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)

Target SELL Price Based on Estimated Intrinsic Value = $240
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)

Risk / Stability Grade: A

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

Financial Risk Grade: A

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

Business Quality Grade: A

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report: 12/31/24

AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – LONG 
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – LONG
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None

Description

Sector: Technology
Industry: Communications Equipment

Company Overview:
Qualcomm Incorporated (NASDAQ: QCOM) is a leading semiconductor and telecommunications company specializing in wireless technology. It is best known for its Snapdragon processors and 5G modem chips, which power a wide range of smartphones, IoT devices, and automotive systems. Qualcomm also generates significant revenue from its licensing business, holding a strong portfolio of patents related to cellular communications.

Company Strengths:
Qualcomm benefits from its leadership in 5G technology, a strong intellectual property portfolio, and deep partnerships with major smartphone manufacturers like Apple and Samsung. Its diversified revenue streams, including semiconductor sales and licensing fees, provide stability and strong cash flow. Additionally, Qualcomm’s expansion into automotive, AI, and IoT markets positions it for future growth.

Company Challenges:
Qualcomm faces challenges from increasing competition in the semiconductor space, particularly from companies like MediaTek and Apple’s in-house chip development. Regulatory scrutiny over its licensing practices and ongoing legal battles with major tech firms pose risks. Additionally, geopolitical tensions, particularly with China, could impact its supply chain and business relationships in key markets.

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.