Pull out your cell phone -- Qualcomm (QCOM) probably had something to do with it. The $107 billion semiconductor and wireless technology firm developed the patents behind standards like CDMA, 3G, and 4G -- and the firm makes money on every device that's built to work over those standards. So while mobile device makers battle it out in a highly competitive industry, Qualcomm makes money no matter whose phone you buy.
R&D is the lynchpin of Qualcomm's business. It fuels the licensing revenue that the company generates (around 3% to 5% of retail prices for each handset sold), as well as the more competitive semiconductor business. As smartphone sales continue to rocket, the firm should benefit even more by providing its next-generation chips for OEMs such as Apple (AAPL) and HTC.Qualcomm is in stellar financial shape, with a massive amount of cash on its balance sheet and no long-term debt. That dry powder should help the firm keep paying out R&D costs as well as a modest dividend payout. On Tuesday, management announced a 16.28% dividend increase that brings QCOM's quarterly dividend to 25 cents per share. Qualcomm, one of Maverick Capital's holdings, shows up on recent lists of the 10 Most Popular Hedge Fund Stock Picks and 4 Stocks Poised for an Apple iPad 3 Boost. Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV