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Qualcomm targets $3bn share buyback
02 March 2010
Qualcomm plans to buy back $3 billion worth of shares and boost its divided by $134 million a year
Qualcomm is planning to buy back $3 billion of its shares and boost dividend by 12%. The programme by the mobile phone chipmaker replaces a recent $2 billion buyback plan, under which Qualcomm repurchased $1.7 billion shares. The amount to be repurchased represents 5% of the company’s current market value.
The quarterly dividend has been increased from 17 cents to 19 cents. The move will require the company to pay out an additional $134.4 million a year.
The capital repurchase comes as the company’s shares fell 23% this year. They dipped the most in a decade on January 28, after Qualcomm lowered its 2010 revenue forecasts and predicted lower-than-estimates second-quarter profit.
Qualcomm, headed by CEO Paul Jacobs, ended its most recent quarter with $18.9 billion in cash and marketable securities, up from $17.7 billion the previous quarter. The company makes most of its revenue from licensing technology used in mobile phones and phone systems. GTB