Qualcomm Declares Stock Split, Dividend Hike

Qualcomm (QCOM Quote) shares rose Tuesday after the communications-equipment maker announced a 2-for-1 stock split and raised its dividend.

Shares added $1.50, or 2.2%, to $70.95 in premarket trading, just shy of its 52-week high of $73.50 touched two weeks ago.

The San Diego-based digital wireless company said the stock split will be distributed on Aug. 13 to stockholders of record on July 23, 2004.

The quarterly cash dividend will increase 40% from 10 cents a share to 14 cents a share on a presplit, and is effective for the quarterly dividend payable on Sept. 24, 2004, to stockholders of record at the close of business on August 27, 2004. It will be a tax-free distribution to stockholders.

"The successful growth and worldwide adoption of CDMA technology has significantly increased the cash flow and earnings," the company said. "We are pleased to share this success with our stockholders."

The company reports earnings July 24.