Why NASDAQ:QCOM is a Top Pick for Dividend Investors.

Unearth the potential of QUALCOMM INC (NASDAQ:QCOM) as a dividend stock recommended by our stock screening tool. NASDAQ:QCOM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

ChartMill's Evaluation of Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:QCOM earns a 7 out of 10:

• QCOM's Dividend Yield is rather good when compared to the industry average which is at 2.21. QCOM pays more dividend than 89.91% of the companies in the same industry.
• QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
• QCOM has not decreased their dividend for at least 10 years, which is a reliable track record.
• The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Insights: NASDAQ:QCOM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:QCOM scores a 7 out of 10:

• An Altman-Z score of 6.37 indicates that QCOM is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.37, QCOM is in the better half of the industry, outperforming 66.97% of the companies in the same industry.
• QCOM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 1.16, QCOM is doing good in the industry, outperforming 74.31% of the companies in the same industry.
• Even though the debt/equity ratio score it not favorable for QCOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• A Current Ratio of 2.39 indicates that QCOM has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:QCOM, the assigned 9 is noteworthy for profitability:

• The Return On Assets of QCOM (16.52%) is better than 88.99% of its industry peers.
• QCOM's Return On Equity of 35.31% is amongst the best of the industry. QCOM outperforms 95.41% of its industry peers.
• The Return On Invested Capital of QCOM (17.50%) is better than 92.66% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.72%.
• The last Return On Invested Capital (17.50%) for QCOM is well below the 3 year average (24.51%), which needs to be investigated, but indicates that QCOM had better years and this may not be a problem.
• QCOM's Profit Margin of 23.33% is amongst the best of the industry. QCOM outperforms 81.65% of its industry peers.
• QCOM has a better Operating Margin (25.50%) than 82.57% of its industry peers.
• In the last couple of years the Operating Margin of QCOM has grown nicely.
• The Gross Margin of QCOM (55.90%) is better than 76.15% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of QCOM contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.