Is NASDAQ:QCOM suited for dividend investing?

Consider QUALCOMM INC (NASDAQ:QCOM) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:QCOM shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Evaluating Dividend: NASDAQ:QCOM

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:QCOM has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.25, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 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 Assessment of NASDAQ:QCOM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:QCOM has received a 7 out of 10:

• QCOM has an Altman-Z score of 6.09. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
• QCOM's Altman-Z score of 6.09 is fine compared to the rest of the industry. QCOM outperforms 62.96% 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.
• Looking at the Debt to FCF ratio, with a value of 1.31, QCOM is in the better half of the industry, outperforming 76.85% 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.
• QCOM has a Current Ratio of 2.40. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:QCOM scores a 9 out of 10:

• With an excellent Return On Assets value of 18.39%, QCOM belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
• The Return On Equity of QCOM (38.60%) is better than 93.52% of its industry peers.
• The Return On Invested Capital of QCOM (18.14%) is better than 90.74% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 11.84%.
• QCOM's Profit Margin of 26.03% is amongst the best of the industry. QCOM outperforms 87.04% of its industry peers.
• In the last couple of years the Profit Margin of QCOM has grown nicely.
• The Operating Margin of QCOM (26.32%) is better than 86.11% of its industry peers.
• In the last couple of years the Operating Margin of QCOM has grown nicely.
• QCOM has a better Gross Margin (56.22%) than 77.78% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.