4 Simple Reasons to Avoid Qualcomm

For many years, Qualcomm (NASDAQ: QCOM) seemed like a rock-solid tech stock. Its chipmaking business, which generated most of its revenue, dominated the booming mobile chip market. Its licensing business, which reaped most of its profits, generated a steady stream of royalties from every smartphone maker in the world.

Qualcomm also constantly repurchased shares, and has paid a decent yield that's fluctuated between 2% and 5% over the past five years. Today Qualcomm trades at 16 times forward earnings and pays a forward yield of 3.5% -- which might look tempting to income investors. However, investors should avoid this stock for the moment, for four simple reasons.

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