Dividend Stocks to Buy: Qualcomm (QCOM)
Investing Type: Aggressive
Dividend Yield: 4%
Shares of Qualcomm, Inc. (NASDAQ:QCOM) have had a tumultuous ride this year, down 14% in 2017.
Why the slide? Blame a legal battle with Apple Inc. (NASDAQ:AAPL). Apple is currently withholding $1 billion in royalty payments until a legal dispute is settled. Qualcomm also had to pay $815 million to BlackBerry Ltd (NASDAQ:BBRY) in mid-April. Right now, QCOM is a lawyer magnet, and that makes it suitable only for those with higher risk profiles.
But Qualcomm wouldn’t be on this list of top dividend stocks without a few positive traits.
Earnings estimates have declined dramatically in the wake of QCOM’s troubles. That’s not great, but lower expectations are easier to hurdle over, and the valuation has been knocked down to boot. Plus, when and if Qualcomm finally closes on its acquisition of NXP Semiconductors NV (NASDAQ:NXPI), that’s a fairly bullish driver that should reverse the recent downturn. (Qualcomm paid $38 billion — an attractive price for NXP.)
Qualcomm has its problems, but a 4% dividend will amply pay investors while they wait for more positive headlines to trickle down.