Qualcomm (QCOM) Dividend Increase Reflects Confidence in Earnings Growth, Goldman Reiterates CL-Buy

March 5, 2013 10:42 AM EST
Get Alerts QCOM Hot Sheet
Price: $54.88 -12.72%

Rating Summary:
    20 Buy, 24 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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This morning Qualcomm (NASDAQ: QCOM) announced a 40 percent dividend increase and a $5 billion buyback plan. In the view of analysts at Goldman Sachs, the announcement is a positive for the stock and reflects Qualcomm's confidence in growing earnings at a double digit rate over the next 5 years.

"The new dividend implies a dividend yield of 2.05%, compared to the average for the S&P 500 of 2.15%, placing Qualcomm in the top 30 tech stocks within the S&P 500. We also view Qualcomm's new buyback authorization positively, as Qualcomm has been an opportunistic and generally well-timed buyer of its stock," said analyst Simona Jankowski.

Goldman Sachs today maintained a conviction Buy rating on Qualcomm with a price target of $80.00.

For an analyst ratings summary and ratings history on Qualcomm (NASDAQ: QCOM) click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $66.63 yesterday.

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