Investors caught in the fight for mobile device supremacy between Apple (NASDAQ:AAPL) and Samsung can easily win or lose. It all depends on which company’s product dominate consumer spending with every new product cycle. But the smart investors understand that Qualcomm (NASDAQ:QCOM) will win either way; regardless of who comes out on top. And the company is beginning to reward investors for their intelligence.
It pays to be smart
Last week, Qualcomm announced a immediate 40% hike in its quarterly dividend in addition to a $5 billion stock buyback, which replaces the prior $4 billion program. The company said that the dividend will increase from $0.25 to $0.35 per share of common stock and will be effective for quarterly dividends payable after March 27, 2013. This means that the annualized dividend payout is raised to $1.40 per share of common stock.
However, following the news, Qualcomm was removed from Goldman Sachs‘s (NYSE:GS) “conviction list.” Analyst, Simona Jankowski said that the removal was on the premise that Qualcomm’s market share is likely to have peaked…
Disclosure: At the time of publication, Richard held no positions in the companies mentioned.