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2 Wireless Stocks With Decent Dividend for a Steady Return
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The Zacks Wireless Equipment industry appears well-poised to benefit from the exponential growth of mobile broadband traffic and home Internet solutions as user demand for coverage speed and quality has increased manifold. The industry is benefiting from higher demand for scalable infrastructure for seamless connectivity amid a wide proliferation of IoT devices. A steady pace of 5G deployment and investments by leading carriers to upgrade their network infrastructure to meet the increasing demand for flexible data, video, voice and IP solutions also seems to have buoyed the industry’s growth. Expansion of fiber optic networks by carriers to support their 4G LTE and 5G wireless standards, and wireline connections is also acting as a tailwind.
However, the demand-supply imbalance owing to an acute shortage of chips, which are the building blocks for various technological equipment, has largely affected the profitability of companies due to inflated equipment prices. High inflationary pressures are further escalating raw material prices. To weed off the liquidity crisis, various firms have resorted to cost-cutting measures such as furloughs, layoffs and reductions in discretionary expenses. Some firms looked beyond the short-term funding avenues, such as revolving lines of bank credit, to bridge temporary cash shortfalls. Others have employed dividend cuts or suspension of dividend payments until the overall situation improved. Although a bulk of the firms across diverse sectors increasingly followed the drift, a handful has chosen to swim against the tide and continue rewarding shareholders with steady dividends.
We have run the Zacks Stocks Screener to identify stocks that have a dividend yield in excess of 2% with five-year historical dividend growth of more than 0.1%. In order to shortlist the stocks, we have screened those that possess either a Zacks Rank #3 (Hold), Zacks Rank #2 (Buy) or Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Here are two key picks from the Zacks Wireless Equipment industry.
Qualcomm Incorporated (QCOM - Free Report) : Headquartered in San Diego, CA, Qualcomm designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access (CDMA) technology. The products include CDMA-based integrated circuits (ICs) and system software for wireless voice and data communications, as well as global positioning system (GPS) products.
Qualcomm is one of the largest manufacturers of wireless chipset based on baseband technology. The company is focusing on retaining its leadership in 5G, chipset market and mobile connectivity with several technological achievements and innovative product launches. It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and Qualcomm's best-in-class security. This, in turn, would further offer the flexibility and scalability needed for broad and fast 5G adoption through accelerated commercialization by OEMs. Qualcomm is reportedly the only chipset vendor with 5G system level solutions spanning both sub-6 and millimeter wave bands and one of the largest RF (radio frequency) front-end suppliers with design wins across all premium-tier smartphone customers. It is also witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. The buyout of Veoneer, Inc. offers Qualcomm a firmer footing in the emerging market of driver-assistance technology, as it aims to extend the Snapdragon Ride Advanced Driver Assistance Systems (ADAS) portfolio. Qualcomm believes that it is on track to become the largest smartphone RF front-end supplier by revenues in the near future.
This Zacks Rank #3 stock has a dividend yield of 2.1% and a five-year historical dividend growth of 4.4%. It has a long-term earnings growth expectation of 15%. Check Qualcomm’s dividend history here.
Ericsson (ERIC - Free Report) : Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide. It is in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.
Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson foresees mainstream 4G offerings giving way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence.
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2 Wireless Stocks With Decent Dividend for a Steady Return
The Zacks Wireless Equipment industry appears well-poised to benefit from the exponential growth of mobile broadband traffic and home Internet solutions as user demand for coverage speed and quality has increased manifold. The industry is benefiting from higher demand for scalable infrastructure for seamless connectivity amid a wide proliferation of IoT devices. A steady pace of 5G deployment and investments by leading carriers to upgrade their network infrastructure to meet the increasing demand for flexible data, video, voice and IP solutions also seems to have buoyed the industry’s growth. Expansion of fiber optic networks by carriers to support their 4G LTE and 5G wireless standards, and wireline connections is also acting as a tailwind.
However, the demand-supply imbalance owing to an acute shortage of chips, which are the building blocks for various technological equipment, has largely affected the profitability of companies due to inflated equipment prices. High inflationary pressures are further escalating raw material prices. To weed off the liquidity crisis, various firms have resorted to cost-cutting measures such as furloughs, layoffs and reductions in discretionary expenses. Some firms looked beyond the short-term funding avenues, such as revolving lines of bank credit, to bridge temporary cash shortfalls. Others have employed dividend cuts or suspension of dividend payments until the overall situation improved. Although a bulk of the firms across diverse sectors increasingly followed the drift, a handful has chosen to swim against the tide and continue rewarding shareholders with steady dividends.
We have run the Zacks Stocks Screener to identify stocks that have a dividend yield in excess of 2% with five-year historical dividend growth of more than 0.1%. In order to shortlist the stocks, we have screened those that possess either a Zacks Rank #3 (Hold), Zacks Rank #2 (Buy) or Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Here are two key picks from the Zacks Wireless Equipment industry.
Qualcomm Incorporated (QCOM - Free Report) : Headquartered in San Diego, CA, Qualcomm designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access (CDMA) technology. The products include CDMA-based integrated circuits (ICs) and system software for wireless voice and data communications, as well as global positioning system (GPS) products.
Qualcomm is one of the largest manufacturers of wireless chipset based on baseband technology. The company is focusing on retaining its leadership in 5G, chipset market and mobile connectivity with several technological achievements and innovative product launches. It is likely to help users experience a seamless transition to super-fast 5G networks, delivering low-power resilient multi-gigabit connectivity with unprecedented range and Qualcomm's best-in-class security. This, in turn, would further offer the flexibility and scalability needed for broad and fast 5G adoption through accelerated commercialization by OEMs. Qualcomm is reportedly the only chipset vendor with 5G system level solutions spanning both sub-6 and millimeter wave bands and one of the largest RF (radio frequency) front-end suppliers with design wins across all premium-tier smartphone customers. It is also witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. The buyout of Veoneer, Inc. offers Qualcomm a firmer footing in the emerging market of driver-assistance technology, as it aims to extend the Snapdragon Ride Advanced Driver Assistance Systems (ADAS) portfolio. Qualcomm believes that it is on track to become the largest smartphone RF front-end supplier by revenues in the near future.
This Zacks Rank #3 stock has a dividend yield of 2.1% and a five-year historical dividend growth of 4.4%. It has a long-term earnings growth expectation of 15%. Check Qualcomm’s dividend history here.
QUALCOMM Incorporated Dividend Yield (TTM)
QUALCOMM Incorporated dividend-yield-ttm | QUALCOMM Incorporated Quote
Ericsson (ERIC - Free Report) : Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is a leading provider of communication networks, telecom services and support solutions. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide. It is in demand among operators to expand network coverage and upgrade networks for higher speed and capacity.
Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson foresees mainstream 4G offerings giving way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence.
This Zacks Rank #3 stock has a dividend yield of 2.4% and a five-year historical dividend growth of 22.9%. Check Ericsson’s dividend history here.
Ericsson Dividend Yield (TTM)
Ericsson dividend-yield-ttm | Ericsson Quote