Qualcomm Rises In After Hours Trading

Qualcomm's stock is up 2.8% in after hours trading on news of a company stock buyback and a dividend hike. Qualcomm shares were down over 3% during market hours. Shares are now trading at $36.48, up over $1 per share in the after hours market.

According to the press release, Qualcomm's "Board of Directors has approved a 12% increase in the Company's quarterly cash dividend and, effective immediately, a new $3.0 billion stock repurchase program to replace a $2.0 billion stock repurchase program." The dividend will increase from 17 cents per share to 19 cents. The dividend payout over the full year will increase to 76 cents per share. The dividend increase would be paid to shareholders of record on March 28th.

This is good news for Qualcomm investors who have seen Qualcomm's stock steadily declining over the past few months from the $45 level. The chipmaking giant's stock had dropped due to a cut in its quarterly forecast and full year revenue outlook. The company blamed its revenue cuts on lower pricing and a slower than expected recovery in the chip market. Qualcomm's stock is only 10% above its 52 week low. The shares may represent a decent buying opportunity for value investors.