Uncovering Dividend Opportunities with NASDAQ:QCOM.

Our stock screener has spotted QUALCOMM INC (NASDAQ:QCOM) as a good dividend stock with solid fundamentals. NASDAQ:QCOM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NASDAQ:QCOM

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:QCOM has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.20, QCOM pays a better dividend. On top of this QCOM pays more dividend than 90.74% of the companies listed 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.
• 36.35% of the earnings are spent on dividend by QCOM. This is a low number and sustainable payout ratio.
• QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Examination for NASDAQ:QCOM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:QCOM, the assigned 7 for health provides valuable insights:

• QCOM has an Altman-Z score of 6.18. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
• QCOM has a better Altman-Z score (6.18) than 66.67% of its industry peers.
• QCOM has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
• The Debt to FCF ratio of QCOM (1.31) is better than 75.93% of its industry peers.
• 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 2.40 indicates that QCOM has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:QCOM was assigned a score of 9 for profitability:

• QCOM's Return On Assets of 18.39% is amongst the best of the industry. QCOM outperforms 91.67% of its industry peers.
• QCOM's Return On Equity of 38.60% is amongst the best of the industry. QCOM outperforms 93.52% of its industry peers.
• QCOM has a Return On Invested Capital of 18.14%. This is amongst the best in the industry. QCOM outperforms 92.59% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 11.09%.
• Looking at the Profit Margin, with a value of 26.03%, QCOM belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
• QCOM's Profit Margin has improved in the last couple of years.
• QCOM has a better Operating Margin (26.32%) than 85.19% of its industry peers.
• QCOM's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 56.22%, QCOM is doing good in the industry, outperforming 77.78% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of QCOM

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.