15 Best NASDAQ Dividend Stocks To Buy

7. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 74

QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor company that offers a wide range of wireless technology services. The company has established a solid presence in the smartphone chip industry and is well-positioned to capitalize on the rapidly expanding generative AI smartphone market. According to IDC, this market is projected to grow at an annual rate of 78% through 2028, with yearly shipments reaching 912 million units by the end of the period. Additionally, Counterpoint Research ranks the company as the second-largest player in the smartphone application processor market, holding a 31% market share. It is one of the best dividend stocks on our list as the stock delivered a nearly 17% return to shareholders in the past 12 months.

In fiscal Q4 2024, QUALCOMM Incorporated (NASDAQ:QCOM) reported impressive earnings, with revenues reaching $10.24 billion, marking an 18% increase compared to the same quarter the previous year. Net income surged 33% year-over-year to $3.5 billion. Additionally, the company achieved annual earnings per share growth of over 30% for fiscal 2024.

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 a solid dividend payer because of its stable cash position. At the end of the quarter, the company had approximately $8 billion available in cash and cash equivalents. Its operating cash flow came in at $12.2 billion, up from $11.3 billion in the same period last year. During the quarter, it returned $2.2 billion to shareholders through dividends and share repurchases. Due to this cash position, the company was able to grow its payouts for 20 consecutive years. Currently, it offers a quarterly dividend of $0.85 per share for a dividend yield of 2.06%, as of January 15.

QUALCOMM Incorporated (NASDAQ:QCOM) was a part of 74 hedge fund portfolios at the end of Q3 2024, as per Insider Monkey’s database. The stakes owned by these funds are worth $3.23 billion in total.