Qualcomm Raises Quarterly Dividend 3.4% to $0.92

Qualcomm raised its quarterly dividend 3.4% to $0.92 a share from $0.89. The first higher installment went ex-dividend June 4, 2026, and the annual dividend is $3.68 a share.

Why the dividend changed

The increase is part of Qualcomm’s broader capital-return policy rather than the result of a split, merger or spin-off. The board paired the higher dividend with a new $20.0 billion share-repurchase authorization. Chief Executive Cristiano Amon said Qualcomm remained focused on stockholder returns while extending its technology portfolio, pursuing diversification and maintaining operating discipline. Qualcomm’s dividend-increase announcement linked the two actions directly.

The business backdrop has become more demanding since that decision. Qualcomm’s latest quarterly filing showed that fiscal third-quarter revenue declined from the prior-year period, principally because of lower revenue in its QCT chip business. Handset revenue was hurt as some manufacturers reduced build plans amid memory-supply constraints and higher memory prices. Automotive revenue increased, helped by new vehicle launches using Snapdragon digital-cockpit and driver-assistance products, while the acquired Alphawave operation contributed data-center revenue. Qualcomm’s fiscal third-quarter Form 10-Q also said higher product costs and lower revenue pressured QCT profitability.

Qualcomm continues to direct spending toward growth outside handsets. At its investor day, the company expanded its fiscal 2029 non-handset revenue target to $40 billion and set a data-center revenue target of more than $15 billion. The strategy spans automotive, industrial systems, networking, robotics and AI infrastructure. Qualcomm’s investor-day announcement provides the longer-term context for management’s emphasis on diversification.

Dividend track record

Qualcomm has increased its dividend for 22 consecutive years. No annual cut appears in the payment history. The five-year dividend growth rate is 6.5% annual growth, showing that the latest 3.4% increase is smaller than the recent longer-term pace but remains consistent with a measured annual progression.

Full-year payments rose from $2.57 a share in 2020 to $2.69 in 2021, $2.93 in 2022, $3.15 in 2023, $3.35 in 2024 and $3.52 in 2025. Those annual increases were 4.7%, 8.9%, 7.5%, 6.4% and 5.1%, respectively. The sequence shows uninterrupted growth, with the rate of increase moderating after 2022.

The individual payments show the same step pattern. Qualcomm paid $0.85 on the December 5, 2024, and March 6, 2025, ex-dividend dates. The rate moved to $0.89 beginning with June 5, 2025, and remained there through March 5, 2026. It then advanced to $0.92 for the June 4 and September 3, 2026, ex-dividend dates. The company’s quarterly declaration confirmed the first payment at the higher rate.

Is the dividend covered?

The dividend consumes 41% of earnings. That ratio leaves a majority of earnings available for reinvestment, acquisitions, repurchases, debt service and other corporate purposes, providing a meaningful earnings cushion against ordinary fluctuations in the semiconductor cycle.

SmarterDividends rates the dividend A, with a dividend safety score of 95. That falls in the very safe range of 80-100 and reflects strong current coverage and the long record of increases. The assessment does not remove business risk: Qualcomm’s filing identifies handset demand, component costs, trade policy and customers’ development of their own chips as factors that can affect future revenue and cash flow. The company nevertheless said it intends to continue using cash dividends to return capital, subject to capital availability and board judgment.

Yield and valuation

Qualcomm’s forward yield is 1.87%, compared with a 1.38% median for the Technology sector. The stock therefore offers a higher forward income rate than the sector benchmark, although its yield remains modest in absolute terms.

At an annual dividend of $3.68, an investor holding 100 shares receives $368.00 in annual dividend income at the current rate. SmarterDividends’ fair-value estimate is $193.35, with a fair valuation verdict and 9% upside. The shares have recorded a 1.8% loss over one year.

What to watch

The next quarterly results will show whether memory shortages and higher component prices remain a drag on handset demand and chip margins. Qualcomm has warned that these pressures could persist over the next several quarters. Investors can also track the pace at which Apple shifts more devices to its internally developed modem, a change Qualcomm says will have a significant negative effect on QCT revenue, operating results and cash flow.

Progress in automotive and data centers is the counterweight. Upcoming disclosures can clarify whether automotive launches, Alphawave integration and new AI-infrastructure programs are broadening revenue as planned. The next dividend declaration will also show whether the $0.92 quarterly rate is maintained after the September 3, 2026, ex-dividend date.