Qualcomm Rewards Investors With $20 Billion Buyback and Higher Dividends

Qualcomm Inc (NASDAQ:QCOM) shares rallied on Tuesday after the company announced a shareholder-return update that includes a higher dividend and a new buyback plan, as risk appetite improved amid higher major indices. The move is also tracking a broadly green tape, with the Communication Services sector gaining and the S&P 500 up. Qualcomm said its board approved a quarterly cash dividend increase to 92 cents per share from 89 cents, effective for quarterly dividends payable after March 26, 2026. The company also authorized a new $20 billion stock repurchase program, effective immediately, reinforcing management’s commitment to returning capital. Dividend Increase and Buyback Plan The dividend hike lifts Qualcomm’s annualized dividend payout to $3.68 per share, based on the new quarterly rate. Qualcomm held $7.21 billion in cash and cash equivalents as of Dec. 28, 2025. Technical Analysis Qualcomm is trading 3.9% below its 20-day SMA and 17.3% below its 100-day SMA, keeping the intermediate trend pointed down even after Tuesday’s bounce. Shares are down 15.86% over the past 12 months and are currently positioned closer to their 52-week lows than highs. Current Trading Position RSI is at 29.14, which puts the stock in oversold territory and often signals that selling pressure may be getting stretched in the near term. The MACD is at -4.8887 and remains below its signal line at -4.4335, keeping bearish momentum in place despite the oversold reading. The combination of oversold RSI (below 30) and bearish MACD suggests mixed momentum. Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the April 29, 2026 (estimated) earnings report. EPS Estimate: $2.30 (Down from $2.85 YoY) Revenue Estimate: $10.57 Billion (Down from $10.84 Billion YoY) Valuation: P/E of 26.1x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $167.35. Recent analyst moves include: Seaport Global: Downgraded to Sell (Target $100.00) (March 16) Loop Capital: Upgraded to Buy (Target $185.00) (February 24) Wells Fargo: Upgraded to Equal-Weight (Raises Target to $150.00) (February 24) Benzinga Edge Rankings Below is the Benzinga Edge scorecard for Qualcomm, highlighting its strengths and weaknesses compared to the broader market: Momentum: Weak (Score: 13.06) — The stock is lagging on trend strength, which fits with the price sitting below key moving averages. Quality: Neutral (Score: 58.19) — Fundamentals screen as middle-of-the-road, suggesting the balance sheet/earnings profile isn’t the main driver of the current tape. Value: Neutral (Score: 30.08) — Valuation looks closer to fair than cheap on this model, even after the longer-term pullback. The Verdict: Qualcomm’s Benzinga Edge signal reveals a momentum-challenged setup with neutral quality and value readings. For longer-term investors, the oversold technicals and stepped-up capital returns may be constructive. However, the scorecard still argues the stock needs to rebuild trend strength before the tape turns decisively favorable. Top ETF Exposure VanEck Semiconductor ETF (NASDAQ:SMH): 4.38% Weight Tema Global Royalties ETF (NASDAQ:ROYA): 5.25% Weight First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL): 6.16% Weight Significance: Because QCOM carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock. Price Action QCOM Stock Price Activity: Qualcomm shares were up 2.05% at $132.04 at the time of publication on Tuesday, according to Benzinga Pro data. Photo: Shutterstock