As Qualcomm Stock Raises Its Dividend, Is QCOM Stock a Buy?

Core Insights - Dividend investors have seen positive returns in 2026, with dividend-focused funds like the iShares Core Dividend Growth ETF (DGRO) outperforming the S&P 500 by returning over 2% year-to-date as of early March [1] - Companies that consistently increase their dividends demonstrate confidence in their financial stability, which is crucial in a market focused on capital protection [2] Qualcomm's Dividend and Buyback Strategy - Qualcomm's board approved a quarterly cash dividend increase from $0.89 to $0.92 per share, representing a 3.4% raise, along with a new $20 billion stock repurchase authorization [3] - This decision follows a significant decline in Qualcomm's stock, which has dropped over 36% from its 52-week high due to a global memory supply crunch affecting smartphone production and earnings guidance [4] Market Performance and Valuation - Qualcomm's stock has underperformed, down about 17% over the past 52 weeks and an additional 23% year-to-date [5] - The stock is currently trading at approximately 15.44 times forward earnings, which is below the sector average of 21.59 times, indicating a lower valuation for expected profits [6] Dividend Yield and Financial Health - Qualcomm offers a dividend yield of about 3.56%, with a forward payout ratio near 35% and a 23-year streak of annual dividend increases, significantly higher than the tech sector's average yield of around 1.4% [7]