Qualcomm is currently focusing on using dividends to bring value to shareholders instead of buying back its stock, chief executive Cristiano Aman told CNBC’s Jim Kramer on Monday.
“We’ve increased our dividends. We’ve talked about annual dividend targets, higher single digits, lower double-digit growth rates, and we’re going to look for opportunistic purchases,” Aman said in an interview with “Mad Money.”
Qualcomm announced on March 9 that it had approved a 10% quarterly cash dividend increase, increased the dividend per share of common stock from 68 cents to 75 cents and increased the annual dividend payout to সাধারণ 3 per share of common stock.
“We want to maintain strategic flexibility, even for M&A, because we see that diversity is working for the company. … We want it to grow rapidly,” Aman said.
The CEO’s comment comes after Kramer questioned why Qualcomm is not buying back its stock. Chip stocks fell last Friday after JPMorgan removed Qualcomm from its April analyst focus list but rose 4.64% on Monday, which saw a big rally in technology stocks.
The company announced Monday that it has completed the acquisition of Arriver from SSW partners to improve its advanced driver support system software.
Disclosure: Owner of shares of Kramers Charitable Trust Qualcomm.
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