We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Rewards Shareholders With 10% Dividend Hike
Read MoreHide Full Article
Qualcomm Incorporated (QCOM - Free Report) recently announced a 10% year-over-year hike in its quarterly dividend payout to 75 cents per share or $3.00 on an annualized basis. The news seemed to have struck the right chords with investors as share prices rose 4.2% to close at $157.11 yesterday.
Based on the closing price, as of Mar 9, 2022, the proposed dividend affirms a yield of 1.9%. A steady dividend payout is part of Qualcomm’s long-term strategy to provide attractive risk-adjusted returns to stockholders. Additionally, healthy dividend increases at periodic intervals have been one of its strengths.
The current hike reflects the inherent financial strength of the company and the strong cash flow generated from continued focus on high-margin businesses and healthy execution of operating plans. Qualcomm is one of the largest wireless chipset manufacturers based on baseband technology. The company is focusing on retaining its leadership in 5G, the chipset market and mobile connectivity with several technological achievements and innovative product launches.
These products are 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.
The acquisition of Veoneer is expected to offer 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. The Arriver business of Veoneer operates the dedicated software unit focused on sensor perception and drive policy, including a full stack of features and functions. It was born out of a collaborative agreement with Qualcomm and leveraged the chipmaker’s Snapdragon Ride SoC hardware to emerge as a leading ADAS solution provider in the auto industry. With the acquisition, Qualcomm aims to incorporate Arriver's Computer Vision, Drive Policy and Driver Assistance assets into its ADAS portfolio to deliver an open and competitive platform for automakers to better compete with rivals within the self-driving vehicle market. This, in turn, is likely to augment its automotive business as it strives to boost revenues beyond chipmaking for the smartphone market.
For calendar year 2021, 5G handsets witnessed a healthy year-over-year growth of 7% to 535 units. In 2022, 5G handsets are likely to grow to 750 units. The company is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream to meet its long-term revenue targets. During first-quarter fiscal 2022, Qualcomm recorded strong demand in emerging product categories such as XR and wearables along with 4G and 5G mobile broadband devices and rapid adoption of Wi-Fi 6. The company has inked an agreement with chipset manufacturer GlobalFoundries to manufacture state-of-the-art 5G multi-gigabit speed RF front-end products owing to their increasing demand. The firms extended their RF collaboration to offer sturdy low-power semiconductor solutions with high cellular speeds, maximum power efficiency and enhanced coverage. These products are specifically designed to power 5G-enabled connected devices with revolutionary coverage and ubiquitous mobility. Qualcomm has also announced the launch of the world’s first drone platform and reference design to offer 5G and AI capabilities that will likely help accelerate the development of commercial drones and unlock innovative possibilities for industries to adopt high-performance drone solutions. These positive drivers and sound financial management probably provided the requisite wherewithal for the quarterly dividend hike.
Shares of the company have gained 22.9% in the past year compared with the industry’s rise of 8.7%. We are impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock.
Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the company’s current year have moved up 102.7% since March 2021. Over the past year, Clearfield has gained a solid 90.4%.
Sierra Wireless, Inc. , carrying a Zacks Rank #2, in another key pick. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 16.9%. Earnings estimates for the current year for the stock have moved up 68.8% since March 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
ADTRAN Inc. (ADTN - Free Report) , sporting a Zacks Rank #1, is also a solid pick. It delivered an earnings surprise of 140.4%, on average, in the trailing four quarters.
The company’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. ADTRAN is focused on being a top global supplier of access infrastructure and related value-added solutions from the Cloud Edge to the Subscriber Edge through a broad portfolio of flexible hardware and software network solutions. Over the past year, ADTRAN has gained a modest 12.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Qualcomm (QCOM) Rewards Shareholders With 10% Dividend Hike
Qualcomm Incorporated (QCOM - Free Report) recently announced a 10% year-over-year hike in its quarterly dividend payout to 75 cents per share or $3.00 on an annualized basis. The news seemed to have struck the right chords with investors as share prices rose 4.2% to close at $157.11 yesterday.
Based on the closing price, as of Mar 9, 2022, the proposed dividend affirms a yield of 1.9%. A steady dividend payout is part of Qualcomm’s long-term strategy to provide attractive risk-adjusted returns to stockholders. Additionally, healthy dividend increases at periodic intervals have been one of its strengths.
The current hike reflects the inherent financial strength of the company and the strong cash flow generated from continued focus on high-margin businesses and healthy execution of operating plans. Qualcomm is one of the largest wireless chipset manufacturers based on baseband technology. The company is focusing on retaining its leadership in 5G, the chipset market and mobile connectivity with several technological achievements and innovative product launches.
These products are 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.
The acquisition of Veoneer is expected to offer 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. The Arriver business of Veoneer operates the dedicated software unit focused on sensor perception and drive policy, including a full stack of features and functions. It was born out of a collaborative agreement with Qualcomm and leveraged the chipmaker’s Snapdragon Ride SoC hardware to emerge as a leading ADAS solution provider in the auto industry. With the acquisition, Qualcomm aims to incorporate Arriver's Computer Vision, Drive Policy and Driver Assistance assets into its ADAS portfolio to deliver an open and competitive platform for automakers to better compete with rivals within the self-driving vehicle market. This, in turn, is likely to augment its automotive business as it strives to boost revenues beyond chipmaking for the smartphone market.
For calendar year 2021, 5G handsets witnessed a healthy year-over-year growth of 7% to 535 units. In 2022, 5G handsets are likely to grow to 750 units. The company is well-positioned to benefit from solid 5G traction with greater visibility and a diversified revenue stream to meet its long-term revenue targets. During first-quarter fiscal 2022, Qualcomm recorded strong demand in emerging product categories such as XR and wearables along with 4G and 5G mobile broadband devices and rapid adoption of Wi-Fi 6. The company has inked an agreement with chipset manufacturer GlobalFoundries to manufacture state-of-the-art 5G multi-gigabit speed RF front-end products owing to their increasing demand. The firms extended their RF collaboration to offer sturdy low-power semiconductor solutions with high cellular speeds, maximum power efficiency and enhanced coverage. These products are specifically designed to power 5G-enabled connected devices with revolutionary coverage and ubiquitous mobility. Qualcomm has also announced the launch of the world’s first drone platform and reference design to offer 5G and AI capabilities that will likely help accelerate the development of commercial drones and unlock innovative possibilities for industries to adopt high-performance drone solutions. These positive drivers and sound financial management probably provided the requisite wherewithal for the quarterly dividend hike.
Shares of the company have gained 22.9% in the past year compared with the industry’s rise of 8.7%. We are impressed with the inherent growth potential of this Zacks Rank #2 (Buy) stock.
Image Source: Zacks Investment Research
Another top-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the company’s current year have moved up 102.7% since March 2021. Over the past year, Clearfield has gained a solid 90.4%.
Sierra Wireless, Inc. , carrying a Zacks Rank #2, in another key pick. It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 16.9%. Earnings estimates for the current year for the stock have moved up 68.8% since March 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
ADTRAN Inc. (ADTN - Free Report) , sporting a Zacks Rank #1, is also a solid pick. It delivered an earnings surprise of 140.4%, on average, in the trailing four quarters.
The company’s end-to-end solutions simplify the deployment of fiber-based broadband services and provide a better customer experience. ADTRAN is focused on being a top global supplier of access infrastructure and related value-added solutions from the Cloud Edge to the Subscriber Edge through a broad portfolio of flexible hardware and software network solutions. Over the past year, ADTRAN has gained a modest 12.6%.