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The Board of Directors of Qualcomm Incorporated (NASDAQ: QCOM) has approved a 5 percent increase in the company's quarterly cash dividend, according to a statement released by the company.

The new quarterly cash dividend stands at $0.68 from $0.65 per share of common stock and will be effective for quarterly dividends payable after March 25, 2021. This dividend increase will raise the annualized dividend payout to $2.72 per share of common stock.

Reacting to the development, Steve Mollenkopf, CEO of Qualcomm Incorporated, said, "We are pleased to announce an increase in our quarterly dividend, reflecting our strong financial performance and continued commitment to returning capital to stockholders."

A combination of the US-China trade wars and the COVID 19 pandemic has initiated a microchip shortage globally that has hit the cell phone, computer and car manufacturing industry, according to experts.

However, proactively leveraging on the demand stemming from the shortage of chip production, Qualcomm delivered an exceptional first quarter with double earnings year-over-year due to strong 5G demand in handsets and growth in RF front-end, automotive and IoT adjacencies, driving record earnings in their chip business.

The company reported a GAAP net income in the December quarter doubling to $2,455 million or $2.12 per share from $925 million or 80 cents per share in the prior-year quarter.

Quarterly non-GAAP net income came in at $2,510 million or $2.17 per share compared with $1,151 million or 99 cents in the year-ago quarter.

Apart from 5G landscape, Qualcomm’s portfolio in chips production encompass consumer electronics, including IoT smart devices, laptops, automobiles, AR headsets, wearables, portable speakers, wireless earbuds and headphones.

According to the Semiconductor Industry Association, global chip sales would grow 8.4 percent in 2021 from 2020′s total of $433 billion, up from 5.1 percent year-on-year.

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