10 Stocks That Are Close To Becoming Dividend Aristocrats

6. QUALCOMM Incorporated (NASDAQ:QCOM)

Consecutive Years of Dividend Growth: 20 Years

QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor company. It holds a leading position in the smartphone chip market and is well-positioned to capitalize on the rapid expansion of the generative AI smartphone segment. This market is projected to grow at an annual rate of 78% through 2028, reaching 912 million units in yearly shipments by the end of the forecast period, as per IDC estimates. Additionally, the company ranks as the second-largest player in the smartphone application processor market, commanding a 31% share, according to Counterpoint Research. QCOM has surged by over 11.5% since the start of 2024.

In fiscal Q4 2024, QUALCOMM Incorporated (NASDAQ:QCOM) reported revenue of $10.24 billion, which saw an 18% growth from the same period last year. Its net income for the quarter also showed a 33% YoY growth at $3.5 billion. The company achieved over 30% year-over-year growth in EPS in FY24. Madison Investments highlighted QCOM in its Q3 2024 investor letter. Here is what the firm has to say:

“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”

QUALCOMM Incorporated (NASDAQ:QCOM) is also popular among investors because of its balance sheet. The company ended the quarter with nearly $8 billion available in cash and cash equivalents. It generated over $12.2 billion in operating cash flow, up from $11.3 billion in the prior-year period. During the quarter, it returned over $2.2 billion to shareholders through dividends and share repurchases. On October 16, the company declared a quarterly dividend of $0.85 per share, which was consistent with its previous dividend. Its dividend growth streak currently stands at 20 years. The stock supports a dividend yield of 2.17%, as of December 2.

As per Insider Monkey’s database of Q3 2024, 74 hedge funds owned stakes in QUALCOMM Incorporated (NASDAQ:QCOM), down from 100 in the preceding quarter. The consolidated value of these stakes is over $3.23 billion. With over 2 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.