Dividend growth in 2026: QCOM stock raises dividend

What happened: Qualcomm (QCOM) reported automotive revenue of $1.101B in Q1 FY2026, up 15% year over year, marking the second consecutive quarter above $1B. The company completed its Alphawave Semi acquisition, establishing a new Data Center segment, and returned $12.596B to shareholders through dividends and a $20 billion buyback. Goldman Sachs initiated coverage on QCOM with a 'Neutral' rating and a $135 price target, while Bernstein cut its price target to $140 from $175, citing high expectations.

Market impact: The dividend hike and buyback announcement by QCOM, a major player in the semiconductor industry, signals confidence in the company's future prospects. This could influence investor sentiment towards other dividend-paying tech stocks and semiconductor companies, such as those in the iShares Core Dividend Growth ETF (DGRO). However, mixed analyst ratings and concerns about key customer losses may temper enthusiasm.

What to watch next: Upcoming QCOM earnings, scheduled for May 1, 2026, will provide further insight into the company's financial health and growth prospects. Additionally, the evolution of QCOM's AI initiatives, as mentioned in a bullish article, will be a key catalyst to watch, given the increasing importance of AI in the tech sector. Lastly, the resolution of QCOM's partnership issues with Apple will be crucial for the stock's performance.