On Tuesday morning, QUALCOMM (QCOM) announced that it has increased its capital return program for its shareholders. Here’s what the plan means for mutual fund investors.
Inside the News
Dividend Increase
The company increased its dividend by 14% to $1.92 annually. The stock now yields approximately 2.65% and this dividend increase will be effective during June’s payout.
Share Buy Back
Qualcomm’s Board of Directors has authorized a $15 billion share buy back program. This will add to its current $2.1 billion authorization. According to QCOM, it will purchase $10 billion in shares in the next twelve months.
Over a Decade of Dividend Increases
Shares of QCOM collapsed after it reported earnings in January, but since then the stock has managed to recover. The company currently offers a dividend yield of 2.6%, which is in-line with its peers.
Qualcomm has boosted its dividend every year since 2003. On average, the company raises its dividend by about 20% a year.
Mutual Funds to Watch
For investors seeking exposure to QCOM, there are several mutual funds that have the company as a holding. Below are three mutual funds that currently own the largest stakes in QCOM.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| VTSMX | Vanguard Total Stock Market | 1.74% |
| VFINX | Vanguard 500 Index | 1.11% |
| VEXMX | Vanguard PRIMECAP | 0.73% |
The Bottom Line
The funds above allow investors to gain exposure to QCOM, while still remaining diversified. Investors interested in QCOM may also be interested in Intel (INTC) and Microsoft (MSFT).
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