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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.01-0.3%Nov 14 9:30 AM EST
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To: JGoren who wrote (93432)7/22/2010 1:38:08 PM
From: Jacob Snyder8 Recommendations  Read Replies (2) of 196649
 
re: one-time large dividend

When companies do this, it has zero sustainable effect on the stock price. Investors buy before the ex-div date, and sell after.

Here's what Qualcomm (the company) could do to give QCOM (the stock) more respect:

1. Increase dividends gradually, making sure they can do at least a small increase every year. Investors love consistency.
2. Target a 5% dividend yield, to be reached 3 years from now. Make a public commitment, to be a Dividend Aristocrat eventually.
3. Stable share count. Ideally, end employee options; incentives should be stock, which must be held at least 5 years, and which is fully paid for when granted.
4. Target GAAP EPS growth of 10%/year, consistently. Other things being equal, 10% EPS growth = 10% stock price increase per year.
5. 5% dividend yield + 10% stock price increase = 15%/y return for investors.
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