Investing.com -- Qualcomm shares rose over 2% in pre-market trading on Tuesday following the company's announcement of a $20 billion share buyback program and a dividend increase.

Qualcomm said its board of directors approved an increase in the quarterly cash dividend from $0.89 to $0.92 per share of common stock. The dividend increase takes effect for quarterly dividends payable after March 26, 2026, bringing the annualized dividend payout to $3.68 per share.

The board also approved a new $20 billion stock repurchase authorization, effective immediately. This authorization adds to the company's existing stock repurchase program announced in November 2024, which has approximately $2.1 billion of repurchase authority remaining. The new stock repurchase program has no expiration date.

The company said the timing of stock repurchases and the number of shares to be repurchased will depend on market conditions and other factors.

"Consistent with our commitment to return capital to our stockholders, we are pleased that our board has approved an increase to our quarterly dividend and a new stock repurchase authorization," said Cristiano Amon, president and CEO of Qualcomm.