Qualcomm Incorporated (Nasdaq: QCOM) today announced that its Board of Directors has approved a 40 percent increase in the Company’s quarterly cash dividend and, effective immediately, a new $5.0 billion stock repurchase program to replace the prior $4.0 billion stock repurchase program, which had $2.5 billion of repurchase authority remaining.
The cash 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 dividend increase will raise the annualized dividend payout to $1.40 per share of common stock.
“In recognition of our strong financial position and continued growth in our business, we are pleased to increase our quarterly cash dividend to a record 35 cents per share and to introduce a new $5.0 billion stock repurchase program,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Our business model continues to generate strong operating cash flows that enable us to invest in and execute on our strategic priorities, while also returning capital to stockholders. Since these programs began in 2003, we have returned $19.9 billion to stockholders through a combination of stock repurchases and cash dividends.”
The new stock repurchase program has no expiration date. The timing of stock repurchases and the number of shares of common stock to be repurchased will depend upon prevailing market conditions and other factors. Repurchases under this program will be made using the Company’s cash resources and may be commenced or suspended at any time or from time-to-time at the Company’s discretion without prior notice. Repurchases may be made in the open market, through 10b5-1 programs, in privately negotiated transactions or through the use of derivative instruments.
Qualcomm Incorporated (Nasdaq: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 25 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit www.qualcomm.com.
This news release contains forward-looking statements that are subject to risks and uncertainties, including statements regarding the continued growth in the Company’s business and the Company’s ability to generate cash flows and maintain its cash dividend and/or stock repurchase programs. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to risks associated with the commercial deployment of and demand for our technologies and our customers’ and licensees’ equipment, products and services based on these technologies; the uncertainty of global economic conditions; competition; our dependence on a small number of customers, licensees and suppliers; attacks on our licensing business model; claims by third parties that we infringe their intellectual property; and failures, defects or errors in our products and services or in the products of our customers and licensees. These and other risks are detailed in our most recent Form 10-K and Form 10-Q filed with the SEC, copies of which are available on our website at www.qualcomm.com. The Company undertakes no obligation to update any forward-looking statement.