How Sustainable is Qualcomm's Dividend?

Qualcomm (NASDAQ: QCOM), the biggest mobile chipmaker in the world, started paying a dividend in 2003. It raised its payout annually every year since then, and currently pays a forward yield of 4.4%, making it one of the highest yielding "mature tech" stocks on the market.

When we combine that high yield with Qualcomm's P/E of 20, which is lower than the industry average of 23 for semiconductor makers, the stock looks like a solid income play for conservative investors. However, several major headwinds caused Qualcomm shares to drop 20% this year and erase those dividend-related gains. Let's see if those headwinds will persist, and whether or not they could hurt its dividend growth.

Source: Qualcomm.

Source: Fool.com