Dividends4Life: Qualcomm a Long-Term Dividend Bargain at Current Levels (QCOM)

In the mobile tech world, hitching your wagon to Apple (AAPL) can work for you and against you. As the recent selloff makes clear, chip maker Qualcomm (QCOM) has seen its fortunes — and stock price — inextricably linked to the iPhone juggernaut. And that hasn’t worked out too well in recent days. However, as one of the top two chipmakers on the planet, QCOM is more than just an Apple vendor. And while it will be affected by China’s sluggish economy, if you look a little deeper you will see that there is plenty of long-term growth in QCOM stock.

Another compelling feature of QCOM here is its 3.5% yield. That’s about double the U.S. inflation rate at this point. It means you can buy into one of the top tech growth companies in the world and while you wait for growth to take the stock back to its former glory and beyond, you can receive a rock-solid inflation-beating dividend for your patience. Year-to-date, QCOM is off 27%, and about half of that drop occurred in the past week. But savvy investors make their money by knowing the difference between a stock that still has more downside and one that is a great value at current levels. Given the company’s incredibly strong intellectual property reserve, the organic growth that is latent in the most populous nations on the planet and its impressive dividend, you would be hard-pressed to find a better value in the tech sector at the moment.

Source: InvestorPlace

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