5 Best Technology Stocks That Pay Dividends

3. QUALCOMM, Inc. (NASDAQ: QCOM)

Hedge Funds: 87
Total Hedge Fund Holdings: $2.58 billion
Dividend Yield: 1.61%

Qualcomm is another USA-based tech giant that has been around to see its technology used as a basis for developing the 3G standard. Most of the company’s big ventures are oriented towards wireless communication and its applications in enterprise, end consumers and even the military. Qualcomm has recorded a wonderful year in 2020, rising 49% and beating market predictions by a long shot. This landed QCOM a spot on the list of 30 most popular stocks among hedge funds for 2020’s Q3.

According to the smart money, Qualcomm has a great potential for growth in the following years. here’s what Amana Mutual Funds says about Qualcomm Inc in an investment letter from Q2 2019:

“We believe the new decade will be a strong one for semiconductor stocks, and as the world’s leading foundry, Taiwan Semiconductor will certainly benefit. Qualcomm faced a raft of challenges over the past few years but commands an unassailable lead in 5G intellectual property.”

Comments made by Del Principe O’Brien Financial Advisors about Qualcomm Inc (NASDAQ:QCOM) stock in their Q2 2019 investor letter reinforce that:

“When Qualcomm was trading in the low $50s, we bought every share we could. Qualcomm stock rose to around $70 when Broadcom was set to acquire the company, but ultimately the deal did not go through. In April of this year, Qualcomm ended a lengthy and complicated legal battle with Apple over the licensing of Qualcomm’s chip technology in Apple’s mobile devices, including its iPhones. The settlement included a payout from Apple to Qualcomm rumored to be around $6 billion, as well as a six-year licensing agreement and a supply agreement guaranteeing that the chipmaker continue to provide its products to the largest company in the world. With this settlement and the expected increase in product shipments, Qualcomm anticipates an incremental earnings per share of $2. As Qualcomm shareholders, we were able to realize a gain of 54% over a short period of time.”

At the end of the third quarter of 2020, a total of 87 of the hedge funds tracked by Insider Monkey were long this stock, a change of 18% from one quarter earlier. By comparison, 60 hedge funds held shares or bullish call options in QCOM at the same time in 2019.