Oualcomm, the family-controlled communications company, announced yesterday it plans to buy back up to $3 billion of its shares whilst also increasing its quarterly cash dividend by 12%.
The stock buyback programme replaces a $2 billion stock repurchase that recently completed with a $1.7 billion uptake, the company said in a statement. The quarterly dividend will increase from $0.17 to $0.19 per share of common stock.
"The strength of our business model is enabling significant investments in our strategic business initiatives while returning capital to stockholders," said second-generation chairman and CEO Paul Jacobs (pictured). "Since commencing this programme in 2003, we have returned $12.6 billion to our stockholders through a combination of dividends and stock repurchases."
The length of the repurchase is flexible and Qualcomm said it will use the company's cash resources to purchase shares under the programme.
Qualcomm stock has dropped 23% this year and it is hoped this move will stop the negative direction of stock price.
Paul Jacobs became chairman in March 2009 after his father, co-founder Dr Irwin Mark Jacobs, retired. (Click here to read our coverage of the story) Qualcomm is based in San Diego, California and recorded revenues in September 2009 of $10.4 billion, a 7% decrease on 2008 results.
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