IBM focused on hybrid cloud computing and AI, raised dividend by $0.01 per share to $1.67
Meta Platforms and Alphabet started paying dividends for the first time with yields of 0.5% each
Qualcomm's automotive segment grew 35% due to Snapdragon Ride platform
Qualcomm's main business is smartphone chipsets, increased dividend by 6% to $0.85 per share
Tech giants IBM and Qualcomm have recently increased their dividends, marking a shift in financial strategy for these companies. Both IBM and Qualcomm have established themselves as reliable dividend payers, with long histories of quarterly distributions.
IBM, which has paid a regular quarterly dividend since 1911, raised its payout by $0.01 per share in the latest announcement. The company is focusing on hybrid cloud computing and artificial intelligence (AI), with consulting contracts worth over $1 billion in AI. IBM's new quarterly distribution is now $1.67 per share, yielding around 4% at the current stock price.
Qualcomm, which has been a regular dividend payer for over 20 years, increased its dividend by 6% to $0.85 per share in the latest announcement. The company's main business is smartphone chipsets, and it also has a strong presence in the automotive and IoT markets as well as patent licensing. Qualcomm's phone segment generated almost $6.2 billion in revenue, while its automotive segment grew 35% to $603 million due to its Snapdragon Ride platform.
Despite a decline in the IoT business, Qualcomm's automotive sector is expected to grow as technology becomes increasingly important for smart cars. Meta Platforms and Alphabet have also recently started paying dividends for the first time in their histories, with yields of 0.5% each.
The shift to regular dividend payouts from these tech giants indicates their financial strength and robust cash flows.
Microsoft and Cisco have higher returns than higher-yielding tech firms that started paying dividends earlier
Liberty All-Star Growth Fund (ASG) focuses on growth stocks, yields 9.3% and trades at a discount to net asset value
CEFs hold various assets and pass profits as income, regulated by FINRA and SEC
Anyone can join the ‘elite’ club of investors through CEFs like ASG
Accuracy
Tech investors are shifting towards paying dividends
Microsoft and Cisco yield 0.7% and 3.3% respectively
Microsoft has a 1,120% return in a decade
Cisco and Microsoft have higher returns than higher-yielding tech firms that started paying dividends earlier
Deception
(5%)
The article makes several statements that could be considered deceptive or misleading. First, the author uses emotional manipulation by implying that the reader is missing out on a great opportunity by not investing in certain tech stocks with high dividends. He also uses sensationalism by describing a 'big shift toward paying dividends' in Silicon Valley as being 'running far below the radar.' Additionally, there are examples of selective reporting, as the author only mentions tech companies with high yields and ignores those with lower yields or no yield at all. Lastly, there is an implication that investing in closed-end funds (CEFs) like Liberty All-Star Growth Fund (ASG) is a guaranteed way to get 'high income and high growth' without disclosing any potential risks or downsides.
What’s more, CEFs hold stocks, bonds, real estate, utilities and other assets, and pass as much of the profits as possible to us as income.
An unusual trend has hit Silicon Valley that’s running far below the radar: a big shift toward paying dividends.
But let’s be honest: These tech stocks’ current yields are still pretty tiny, and that causes most income investors to overlook their sterling growth histories.
ASG is traded like a stock, which means you can buy it during regular trading hours from any online brokerage in America with just a few clicks.
Of course, there are tech-dividend stalwarts that pay at least a bit more and offer long histories of payout growth, too, like Microsoft and Cisco.
I hate the word ‘elite,’ but it fits here because these are a class of investors who’ve found a ‘hack’ to get strong growth and high yields in the same investment.
IBM has paid a regular quarterly dividend since 1911 and recently increased its payout by $0.01 per share.
IBM is focusing on hybrid cloud computing and artificial intelligence, with consulting contracts worth over $1 billion in AI.
Qualcomm has been a reliably regular quarterly dividend payer for over 20 years and recently increased its dividend by 6% to $0.85 per share.
Qualcomm's main business is smartphone chipsets, and it also has a strong presence in the automotive and IoT markets as well as patent licensing.
IBM's new quarterly distribution is $1.67 per share, yielding around 4% at the current stock price.
Qualcomm's phone segment generated almost $6.2 billion in revenue, while its automotive segment grew 35% to $603 million due to its Snapdragon Ride platform.
Despite a decline in the IoT business, Qualcomm's automotive sector is expected to grow as technology becomes increasingly important for smart cars.
Meta Platforms paid a quarterly dividend of $0.20 per share for the first time in its history.
Alphabet unveiled its plans to pay its first-ever dividend of $0.20 per share.
Both companies also have massive share buyback programs.
Meta Platforms reported revenues of $40.1 billion and earnings of $5.33 for the last quarter exceeding expectations.
Alphabet reported revenues of $80.54 billion and earnings of $1.89 in the fiscal first quarter, surpassing analysts’ estimates.
Meta Platforms projected sales for the second quarter range between $36.5 billion and $39 billion with a midpoint of $37.75 billion reflecting an 18% year-over-year growth rate.
Meta Platforms CEO Mark Zuckerberg highlighted initiatives such as advancements in glasses and mixed reality, areas where the company currently lacks profitability.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The author commits an appeal to authority fallacy by quoting Warren Buffett without providing context or relevance to the topic at hand. The quote does not directly support the argument being made in the article.
Don’t Miss: Warren Buffett once said, ‘If you don’t find a way to make money while you sleep, you will work until you die.’
Bias
(95%)
The author does not demonstrate any clear political, religious, ideological or monetary bias in the article. However, there is a disproportionate number of quotes that reflect positively on Meta and Alphabet's decision to pay dividends and their impressive financial results. The author also uses language that depicts these companies as having 'stellar growth potential' and 'historically provided exponential growth'. While this is not inherently biased, it does give a positive slant to the article.
Alphabet, Google’s parent company, unveiled its plans to pay its first-ever dividend of $0.20 per share last month, alongside a massive $70 billion share buyback program.
Alphabet’s total revenues amounted to $80.54 billion in the fiscal first quarter of 2024, marking the fastest growth since 2022.
Meta Platforms reported financials for the last quarter of 2023 exceeded expectations.
Meta Platforms took the market by storm with its announcement of a quarterly dividend payment of $0.20 per share for the first time in its history back in February.
Tech behemoths are known for their stellar growth potential, which results in significant capital gains.
