QUALCOMM Incorporated (QCOM): Examining its Dividend Strength Among Profitable Dividend Stocks

QUALCOMM Incorporated (NASDAQ:QCOM) is included among the 13 Most Profitable Dividend Stocks to Buy Right Now.

QUALCOMM Incorporated (QCOM): Examining its Dividend Strength Among Profitable Dividend Stocks

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QUALCOMM Incorporated (NASDAQ:QCOM) continues to hold its position as a leader in smartphone chip technology, staying ahead of the curve with new processors that now include built-in AI capabilities. Its supply deal with Apple runs through March 2027, which should help sustain sales in the near term. The company also maintains a strong foothold in premium smartphones powered by Alphabet’s Android software. With signs of another smartphone upgrade cycle emerging, investors who have waited patiently may finally see better returns.

So far in fiscal 2025, which ended on June 29, smartphone chips have accounted for about 63% of QUALCOMM Incorporated (NASDAQ:QCOM)’s total revenue. However, the company is working to lessen its dependence on this segment. It’s placing more focus on its IoT and automotive businesses, both of which are seen as promising growth engines that could help offset any decline in Apple-related revenue.

QUALCOMM Incorporated (NASDAQ:QCOM)’s dividend growth streak of 21 consecutive years also makes it a prominent investment in the eyes of income investors. With a quarterly dividend of $0.89 per share, QCOM has a dividend yield of 2.11%.

While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.