Qualcomm dividend: payment and cash coverage
Qualcomm pays a quarterly dividend of $0.92 per share, with a current $3.68 annualized rate. Yes: most free cash flow across fiscal 2021–2025 went to dividends and buybacks, while FY2025 real free cash flow was $10,037 million after stock compensation.
How much does Qualcomm pay in dividends over time?
On March 17, 2026, Qualcomm authorized another $20 billion of repurchases and raised its quarterly dividend to $0.92 per share. An authorization is permission to spend, not money already spent. The decision increases the importance of whether Qualcomm’s new businesses can replace the ownership given away in acquisitions and Amazon’s warrant.
The base dividend rises from $3.80 to $4.04 per share. The bear case holds $3.68 throughout, while the bull case reaches $4.48. The base assumes modest increases after the current $3.68 annualized rate, supported by five years of increases and fiscal 2025 free cash flow of $12,820 million.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.01 | 8.94 | 6.52 | 11.41 | 7.87 |
| Free cash flow per share | 11.60 | 9.88 | 8.75 | 6.01 | 7.53 |
| − Dividends paid, per share | 3.44 | 3.26 | 3.07 | 2.82 | 2.62 |
| − Share buybacks, per share | 7.96 | 3.65 | 2.64 | 2.75 | 2.93 |
| = FCF not paid out, per share | 0.20 | 2.97 | 3.03 | 0.43 | 1.98 |
Is Qualcomm's dividend covered by its cash?
Across fiscal 2021–2025, most free cash flow went to dividends and buybacks. Dividends deliver cash directly. Buybacks increase each remaining share’s ownership only when the company retires more shares than it issues. That distinction matters because employee compensation, acquisitions and strategic agreements can create new shares while Qualcomm is buying others back.
Stock compensation makes conventional free cash flow look better than the ownership economics. Qualcomm recorded $2,783 million of stock compensation in FY2025. Subtracting that analytical cost leaves $10,037 million of real free cash flow. No additional cash payment occurs, but existing shareholders own a smaller share of the company.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 12,820 | 11,161 | 9,849 | 6,834 | 8,648 |
| − Dividends paid | 3,805 | 3,687 | 3,462 | 3,212 | 3,008 |
| − Share buybacks | 8,791 | 4,121 | 2,973 | 3,129 | 3,366 |
| = Free cash flow not paid out | 224 | 3,353 | 3,414 | 493 | 2,274 |
| Paid out, % of free cash flow | 98.3% | 70.0% | 65.3% | 92.8% | 73.7% |
What could change Qualcomm's dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 11,700 (8,400 / 13,160) | 13,230 (8,200 / 15,660) | 15,120 (9,240 / 18,600) |
| Dividends per share | 3.80 (3.68 / 3.92) | 3.92 (3.68 / 4.20) | 4.04 (3.68 / 4.48) |
| Enterprise value to normal operating profit | 14.00 (11.00 / 17.00) | 15.00 (10.00 / 19.00) | 16.00 (11.00 / 21.00) |
| Net debt | 5,892 (5,568 / 6,271) | 4,127 (4,836 / 4,714) | 1,373 (3,741 / 1,921) |
What is Qualcomm's dividend yield today?
Free cash flow is cash left after capital spending. Its 6.9% yield falls to 5.4% under the stated “real” adjustment, while the dividend yield is 2.1%. Price to book is 6.7 times, but internally developed patents and engineering knowledge are not fully recorded as assets.