In terms of valuation, analysts are looking for FY 2024 Adj EPS of $9.57, which equates to an earnings multiple of 12.1x. Speaking of the dividend, QCOM pays an annual dividend that yields 2.85% and over the past five years, investors have seen the company increase their dividend an average of 5.2% per year, so not a ton in terms of dividend growth, although the last two hikes have been ABOVE that average rate, increasing the dividend 7% and 10%, respectively, with those past two hikes. In terms of FCF, QCOM generated $3.7 Billion in FCF through the first half of the year compared to paying out dividend of $1.7 billion in dividends, which equates to a FCF yield of 46%, which tells me the dividend is plenty safe at the moment. QCOM was also cash flow negative during the quarter, as their cash position decreased by $1.3 billion, however, they remain cash flow positive on the year thus far. In terms of Q3 guidance, sales are expected to reach $8.5 billion, which is well below street expectations of $9.1 billion, which also contributed to pressure for the stock following the earnings release. When the company reported their Q2 earnings, they were actually in-line from an EPS standpoint and they BEAT on sales, but the company also gave light guidance #2 - Handheld device chips were down 17%, which is attributable to China as well as the US. However, QCOM relies heavily on the Chinese region. #1 - The recovery in China has been slower than expected, not just for QCOM but for many US companies involved in the region.
One of Qualcomm’s closest competitors and a favorite dividend growth stock of mine is Broadcom ( AVGO), has seen its stock rise over 40% in 2023 thus far. Year-to-date however, QCOM shares are up 8%.īy now you are probably aware of the AI craze that has gone on in 2023, that has seen stocks like NVDA and Meta Platforms double just in 2023 alone. QCOM has a market cap of $129 billion and over the past 12 months, shares are down nearly 20%. The stock had fallen after their latest quarterly earnings release, but has since recovered nicely in recent days. Qualcomm is a semiconductor company that has not partaken in the AI induced rally in 2023. 5 Top Dividend Stocks For the Month of June
Today, I will look at 5 of the Top Dividend Stocks To Buy in the month of June. As such, I look for high-quality stocks trading at great long-term entry points. Investors are in a tough spot when trying to choose the direction the stock market will go over the near-term, but luckily for me, I am an investor and not a trader. The market’s favorite recession indicator happens to be the inversion of the yield curve, meaning the 2yr treasury bond has a HIGHER yield than the 10yr Treasury Bond, which has now been the case for over 220 consecutive days. So all that said, its 50/50 on whether we fall into a recession. The Labor Force remains stable, although consumers are beginning to weaken based on record US credit card debt levels and a low savings rate that also shows the average American savings have been largely wiped away since the pandemic. Regardless, it is evident that we are nearing the end of this rate hike cycle.
Now that the debt ceiling debacle is behind us, investors can yet again turn to obsessing over the Federal Reserve.Įconomic data remains lackluster and economists are split on whether the Federal Reserve will hike again during their June meeting or whether a pause is in order before one final rate hike.
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