15 Stocks to Invest in with Steady Dividends

5. QUALCOMM Incorporated (NASDAQ:QCOM)

Upside Potential as of January 20: 20.3%

QUALCOMM Incorporated (NASDAQ:QCOM) is an American semiconductor company that offers a wide range of wireless technology services. In fiscal Q4 2024, the company delivered strong financial results, with revenues climbing to $10.24 billion, an 18% increase from the same quarter the previous year. Net income rose 33% year-over-year, reaching $3.5 billion. The company also posted an annual earnings per share growth exceeding 30% for fiscal 2024.

QUALCOMM Incorporated (NASDAQ:QCOM) has built a strong foothold in the smartphone chip industry and is well-poised to benefit from the fast-growing generative AI smartphone market. IDC projects this market to expand at an annual rate of 78% through 2028, with annual shipments expected to hit 912 million units by that time. Furthermore, Counterpoint Research places the company as the second-largest in the smartphone application processor market, commanding a 31% market share. Since the start of 2025, the stock has surged by over 9%.

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.”

In addition to its innovations and efforts to expand its portfolio, QUALCOMM Incorporated (NASDAQ:QCOM) is also known for its strong dividend policy. The company has sufficient cash to fund its dividend payments. It ended the quarter with $8 billion available in cash and cash equivalents. The company generated an operating cash flow of $12.2 billion, up from $11.3 billion in the prior-year period. It also remained committed to returning value to shareholders, paying $2.2 billion to investors in dividends. It is one of the best stocks with steady dividends as the company has raised its payouts for 20 years straight. It currently pays a quarterly dividend of $0.85 per share and has a dividend yield of 2.03%, as of January 20.

According to Insider Monkey’s database of Q3 2024, 74 hedge funds owned stakes in QUALCOMM Incorporated (NASDAQ:QCOM), worth $3.23 billion in total.