Sunday, 30 April 2017

Looking at Qualcomm

I'm looking at what's "cheap" and Qualcomm came up on my radar. As shown in the table below, the current price (about $54) and the current dividend yield (about 4.25%) are very attractive relative to its 5 and 3 year average dividend yields. The company has its woes, but if it didn't, the stock price wouldn't be attractive. I would like to initiate a position at $50, but I may just bit the bullet and buy at $54.


QCOM:US
Year
High Price
Low Price
1Q
div.
2Q
div.
3Q
div.
4Q
div.
Annual Dividend
High Yield
Low Yield
2003
$27.43
$14.79
$0.025
$0.025
$0.035
$0.035
$0.12
0.81%
0.44%
2004
$44.99
$26.67
$0.035
$0.05
$0.07
$0.07
$0.23
0.84%
0.50%
2005
$46.60
$32.08
$0.07
$0.07
$0.09
$0.09
$0.32
1.00%
0.69%
2006
$53.01
$32.76
$0.09
$0.09
$0.12
$0.12
$0.42
1.28%
0.79%
2007
$47.72
$35.23
$0.12
$0.12
$0.14
$0.14
$0.52
1.48%
1.09%
2008
$56.88
$28.16
$0.14
$0.14
$0.16
$0.16
$0.60
2.13%
1.05%
2009
$48.72
$32.64
$0.16
$0.16
$0.17
$0.17
$0.66
2.02%
1.35%
2010
$50.31
$31.63
$0.17
$0.19
$0.19
$0.19
$0.74
2.34%
1.47%
2011
$59.84
$45.98
$0.19
$0.215
$0.215
$0.215
$0.65
1.40%
1.08%
2012
$68.87
$53.09
$0.215
$0.25
$0.25
$0.25
$0.97
1.82%
1.40%
2013
$74.32
$59.02
$0.25
$0.35
$0.35
$0.35
$1.30
2.20%
1.75%
2014
$81.97
$67.67
$0.35
$0.42
$0.42
$0.42
$1.61
2.38%
1.96%
2015
$75.30
$45.93
$0.42
$0.48
$0.48
$0.48
$1.86
4.05%
2.47%
2016
$71.62
$42.24
$0.48
$0.53
$0.53
$0.53
$2.07
4.90%
2.89%
2017
$0.53
$0.57
$0.57
$0.57
$2.24
2018
$0.57
$0.57
$0.57
$0.57
$2.28
2019
14y ave
2.05%
1.35%
5y ave
3.07%
2.09%
3y ave
3.78%
2.44%
5y
$74.27
$108.83
3y
$60.37
$93.39
Super Cheap
$46.53

3 comments:

  1. Interesting pick. I just published my potential picks of May and QCOM is on my list too. It would be my first tech stock in my portfolio if I buy. I agree that it's looking cheap today but would like to see it a little cheaper if possible.

    ReplyDelete
    Replies
    1. Hi Keith,

      I did a lot of reading on QCOM and think it's worth the risk. They are the market leader in their area (Intel cannot compete), have lots of cash on hand (they can pay the various fines) and are trying to buy NXP. So eventhough Apple isn't pleased with QCOM, it looks like they are stuck with their chips. And if QCOM buys NXP, then they have the backbone of Apple pay. It's an interesting situation.

      ADY

      Delete
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