Qualcomm Inc (QCOM) announced that its board of directors has approved a major increase in the company’s capital return program – with a dividend increase and a share buyback program. Qualcomm will increase its quarterly dividends form $0.42 to $0.48, an increase of 14.2%. The new quarterly dividend is payable after Mar 25, 2015.
From the press release statement:
- Available Stock Repurchase Authorization Now $15 Billion
- Plans to Repurchase $10 Billion in Stock within Approximately Twelve Months in Addition to Commitment to Return a Minimum of 75% of Free Cash Flow to Stockholders
- Annualized Dividend Increased 14% to $1.92 per Share
- The Company plans to finance the capital return program primarily by accessing the public debt markets in 2015.
“Our business continues to generate substantial operating cash flow, and today’s announcement represents an important step in returning that cash to our owners while still preserving the strategic flexibility needed to drive stockholder value through growth,” said Steve Mollenkopf, CEO of Qualcomm Incorporated. “I am pleased that we continue to build on our track record of returning capital to stockholders, having exceeded each of our capital return commitments in 2014 and returned approximately $37 billion to stockholders since these programs began in 2003.”
My portfolio consists of 40 shares of Qualcomm – increasing my annual dividend from $67.20 to $76.80, an increase of $9.60.