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Buyback Bolsters Qualcomm

Shares rise after a plan to repurchase $3 billion worth of stock.

Qualcomm (QCOM) - Get QUALCOMM Incorporated Report plans to pour $3 billion into a new stock buyback program.

The San Diego wireless technology shop says the new effort will replace an existing $2.5 billion repurchase plan that had $865 million remaining in the budget.

"Strong operating cash flows are driving our development of new products and technologies and enabling us to return capital to stockholders through stock repurchases and dividends," CEO Paul Jacobs said in a press release.

The company says that it has returned $4.8 billion to stockholders through stock repurchases and cash dividends since 2003.

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Funneling cash toward stock buybacks has been good for shareholders and particularly for Qualcomm insiders.

The renewed repurchase plan helps support the stock price as executives continue their prearranged selling programs. So far this month, Jacobs has sold about $2.4 million worth of stock through his 10b5-1 automatic cash-out program.

Qualcomm shares rose 63 cents to $46.76 in early trading Tuesday.