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This story initially appeared on MarketBeat
Many buyers prefer to deal with shares that hike their dividends 12 months after 12 months. They usually are in wonderful monetary well being and generate dependable revenue for a long-term portfolio.
An excellent place to search out firms which can be persistently paying larger dividends is the Nasdaq U.S. Rising Dividend Achievers index. It comprises 50 shares which have a historical past of elevating their dividends and are able to take care of the sample going ahead. The index has posted a 15% annualized since its January 2014 inception.
Apparently, a few quarter of the index is comprised of tech firms that supply not solely rising dividends however strong progress potential. Right here we spotlight three of these names that give progress and revenue buyers the most effective of each worlds.
Did Qualcomm Enhance its Dividend?
Over the previous 12 months, Qualcomm (NASDAQ:QCOM) has paid quarterly dividends totaling $2.60. Within the prior 12 months, dividends had been $2.48, in order that’s 5% year-over-year dividend progress.
Subsequent month, Qualcomm’s quarterly dividend is slated to extend one other $0.03 to $0.68. If we assume this dividend stays intact for the three quarters that observe, the wi-fi communications chief can pay out $2.72 in dividends over the subsequent 12 months. This equates to a 2% ahead dividend yield and compares favorably to the S&P 500’s 1.4% yield.
There’s good cause to imagine Qualcomm’s rising dividend development continues. That is as a result of the corporate’s money place is powerful relative to its debt load. Its 73% cash-to-debt ratio is comfortably forward of the Rising Dividend Achievers threshold of fifty%.
Other than the revenue side of the funding, Qualcomm has robust upside potential as a smartphone chip provider within the daybreak of the 5G community buildout. The corporate is coming off a blowout fiscal 2021 second quarter through which it rode the success of Apple’s 5G iPhone 12 launch as considered one of Apple’s key suppliers. As 5G telephones begin to grow to be the brand new will need to have machine, search for Qualcomm’s earnings and dividends to continue to grow.
Is it a Good Time to Purchase Apple Inventory?
Even a behemoth like Apple (NASDAQ:AAPL) with its $2.2 trillion market cap has room to develop and proceed rewarding shareholders with larger dividends. It has hiked its dividend for eight straight years and definitely has the monetary energy to proceed doing so.
On Might 7th, Apple went ex-dividend which implies shareholders that held the inventory previous to this date will obtain a $0.22 per share payout on Might 13th. People who purchased Apple on or after Might 7th, should anticipate subsequent quarter’s dividend.
Since climbing to a split-adjusted document excessive round $145, Apple inventory has corrected about 10%. If we have discovered something about Apple’s buying and selling historical past, these uncommon corrections have been nice purchase alternatives.
A part of the rationale Apple inventory is comparatively flat in 2021 is concern over its uncharacteristic urge for food for debt in latest durations. But it is onerous to fault the corporate given the supply of low-interest fee financing and the expansion prospects at hand.
Whereas debt has swelled, Apple’s notorious money hoard has been depleted as a result of its aggressive inventory buyback program. However this too ought to be considered as a optimistic as a result of it alerts administration is assured within the firm’s progress prospects and thinks its shares are undervalued.
Apple’s $0.88 annualized dividend and 0.7% ahead yield aren’t a lot. However this money cow is poised to pack on some kilos as iPhone 12 gross sales take off and recurring providers income turns into an even bigger a part of the enterprise. This time subsequent 12 months, Apple will as soon as once more be elevating its dividend and much surpassing Avenue expectations because it so typically does.
Does Activision Blizzard Pay a Dividend?
Activision Blizzard (NASDAQ:ATVI) is a lesser-known dividend grower that seemingly has a few years forward as one of many Nasdaq’s Rising Dividend Achievers. Due to the wild success of its online game portfolio, its money place has swelled to greater than $9 billion. This towers over its $3.6 billion long-term debt steadiness and provides the corporate loads of room to extend its 23% dividend payout ratio.
The recognition of its globally acknowledged sport franchise has gone to an entire different stage through the pandemic. Folks spending extra time at residence have been spending extra time, properly, spending on sport sensations like ‘Name of Responsibility’ and ‘World of Warcraft’. Because of this, its latest earnings have been spectacular.
The 0.5% dividend yield is extra of an afterthought within the case of Activision Blizzard given its progress profile. However, buyers can financial institution the dividend or, higher but, reinvest the cash again into the money machine that’s Activision Blizzard.
Like different pandemic beneficiaries, there may be prone to be a slowdown in progress as players emerge from their basements and enterprise outdoors within the post-COVID world. However Activision Blizzard will nonetheless have the ability to ship robust progress by constructing off its large buyer base and cranking out new hit titles. For buyers, any weak spot on this rising dividend play is a name of obligation to beat some shares.
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