Friday, 2 December 2016

52. Cash-or Trash #3, Qualcomm

Having a stack of dollars burning in my pocket usually makes me more nervous than having actually invested them. This time it’s nothing new, the search for new opportunities has begun!

A quick search for high dividend NASDAQ100 funds (other than the ones I currently own) brings me at A great site for new insights. The first name that appears in a top 11 list of relatively higher dividend paying shares is company Qualcomm.

Quick chart:

Share price
Dividend / yield

Distributions per year
Amount of shares
Dividends per distribution
Dividends per year

The yield is far from where I was interested in years ago. One thing that I have learned over time is that with bigger dividends actually the risks also increase. Time to get some securities, back to the case:. Pros and cons set out against each other:
Qualcomm is known for its increase of dividends (counting from 2003);
Because smartphones demand is still growing, the company expects the earnings per share to rise 15% a year;
TheStreet calls this share undervalued, anticipating a 20% return of market capital within the next few years.
Due to the upcoming cons, the share price has taken a hit (falling from 68 back to 64 USD). Reason to make this an investment opportunity.
Also, the company is planning to take over the Dutch NXP semiconductors
Samsung sales falling, where these smartphone sales make a good portion of Qualcomm revenue;
Patent claims in China, resulting in a 975Million USD fine by the Chinese government.


Positive feelings after this. However, There might just be one out there with a higher yield. Should this share price go under 64 I’ll take a few. If not: I keep the money in my pocket.

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