|Qualcomm Raises Dividend, Reminds Investors of NXP Deal |
By Tiernan Ray
March 8, 2018 6:00 p.m. ET
Shares of Qualcomm ( QCOM) are up 12 cents at $61.94 in late trading after the company this afternoon said it raised its dividend and reminded investors of its pending deal to buy NXP Semiconductors ( NXPI).
Qualcomm’s quarterly cash dividend goes to 62 cents per share from 57 cents previously, payable after March 21st.
The increase follows another salvo by Broadcom ( AVGO) this morning, which is trying to take over Qualcomm in hostile fashion. The company released an infographic about Qualcomm’s involvement in China, after Qualcomm yesterday released a letter from the U.S. Treasury Department raising concerns about Broadcom’s business style and the risks it raises for U.S. national security.
Qualcomm’s CEO, Steve Mollenkopf, said the dividend hike was "a reflection of our commitment to returning capital to stockholders."
He said the company’s looking forward to "closing the pending acquisition of NXP and expect the strong combined cash profile of Qualcomm and NXP to further strengthen our foundation for future capital returns for our stockholders."
Shareholders were originally going to have the annual meeting on Tuesday but it was postponed to April 5th as the Treasury’s CFIUS organization investigates those concerns about Broadcom’s bid. Qualcomm’s deal to buy NXP has been moving through the approvals process for over a year.