This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Stocks That Want to Pay You More This Quarter

Stocks in this article: DDDQCOMWLPGS

Qualcomm

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Wireless technology firm Qualcomm (QCOM) is riding the quick growth of the mobile device market as smartphones, tablets, and subnotebook computers. Qualcomm is best known as a wireless chipmaker, producing everything from processors to wireless communications cards, but it's also a major a major tech IP licensor. The firm's patents effectively mean that every handset maker in the world has to pay Qualcomm royalties if they want their phones to operate on 3G and 4G networks.

>>4 Tech Stocks Under $10 Spiking Higher

That royalty income angle makes QCOM an ideal dividend payer. Right now, the firm pays out a 25-cent quarterly dividend for a 1.6% yield.

Mobile phones have been advancing rapidly in recent years, and handset makers have enjoyed breakneck volume as consumers switched to smartphones and upgraded older units. And every phone sale generates cash for Qualcomm, even if the firm's chips aren't used. Even down the road, that isn't likely to change as handset makers need to retain backward compatibility to sell phones.

Mobile chips are still the biggest part of QCOM's revenues; the firm's offerings are critical components in phones such as the Samsung Galaxy line and the iPhone 5. Qualcomm's new Snapdragon processor stands to be the jewel in the firm's crown, offering more processing power for OEMs and more revenues per chip for QCOM.

A debt-free balance sheet and more than $27 billion in cash and investments give Qualcomm plenty of liquidity to keep paying shareholders on top of its impressive cash flow generation. That sets the stage for a dividend hike in 2013, especially given chipmakers' stock price action over the last year. These firms need to reward shareholders with returns; a dividend hike does that.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs