Wireless communications company Qualcomm Inc. declared a two-for-one stock split Tuesday and increased its quarterly dividend by 40 percent.
The San Diego-based maker of cell-phone chips said its quarterly cash dividend will increase to 14 cents a share from 10 cents on a pre-split basis, and to 7 cents from 5 cents on a post-split basis.
Qualcomm has about 810.2 million shares outstanding.
The increased dividend rate will be payable on September 24, to shareholders of record on August 27. The 2-for-1 stock split will take effect on August 13, for stockholders of record on July 23.
Qualcomm cited the growth of its wireless technology, known as code division multiple access, or CDMA, as significantly increasing its cash flow and earnings. The company invented CDMA, one of the two network standards in the cell-phone industry.
In May, Qualcomm increased its fiscal third-quarter and full-year revenue and earnings views, citing unexpectedly strong demand for its products. The company expects third-quarter earnings of 49 to 51 cents a share on revenue growth of 44 percent to 46 percent. For the year, it projects earnings of $1.93 to $1.98 a share, with revenue up 28 percent to 30 percent.
Qualcomm's fiscal year ends Sept. 30.
Analysts surveyed by Thomson First Call forecast, on average, earnings of about 53 cents a share for the third quarter and $2.06 for the year.
