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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (124581)	10/15/2002 10:49:51 PM
From: hueyone	Respond to of 152472

Nice historical primer on dividends Mucho. Thanks. Best, Huey

To: Wyätt Gwyön who wrote (124581)	10/17/2002 5:05:14 AM
From: Maurice Winn	Respond to of 152472

Mucho, $1 is fine for QUALCOMM to pay out in dividends. They've got $2bn in kitty at the moment, with nothing to do with it. So, they can pay out $1 a share for two years even with no earnings and still have $half a billion in the bank, give or take a few quid. By then, they'll be clear of the Globalstar losses, the Pegaso problems, the Leap losses, the Vesper messes, most of the other Y2K bugs. There will also be the continuing income growth due to China going nuts with CDMA, not to mention Japan, USA and a lot more besides. Cloning chips is super profitable. The design and other basic costs are increasingly water under the bridge, though there is plenty of water still being spent on 'ploughing back into development'. Heaps of money will be dropping to the bottom line. Even with increasing R&D [which is how they plough money back into the business and that comes off BEFORE the earnings bottom line] they have increasing bottom line power. Collecting royalties, selling chips and radioOne have very low marginal costs of production [it's not like another tonne of steel, which requires a LOT of resources, new factory construction, coal and steel digging etc]. What the heck will they do with the tsunami of money? As revenue doubles, costs don't. So, let's say they earn $2 in 2004, $3 in 2005 and $4 in 2006. That would make $1 a share dividend easy peasy. 80 million ASICs per year in 2003 x $20 = $1.6 billion just for chips. Then there's SnapTrack, royalties, radioOne, OmniTRACs, WirelessKnowledge, Wingscar, Globalstar, Vesper and other profit centres [little joke there - don't blow a fuse]. Plus all these others: Message 17178169 I think $1 a share for Xmas [and an extra dollop of stock options for staff] is doable. Mqurice