QCOM vs TXN: Dividend Comparison
Dividend data as of
Qualcomm Inc/De (QCOM) and Texas Instruments Inc (TXN) are both in the Information Technology sector, making them natural rivals for dividend investors. Both stocks offer similar yields — QCOM at 2.51% and TXN at 2.49%. For dividend growth, TXN leads with a 5-year CAGR of 14.6% versus QCOM's 7.0%. TXN holds the edge in dividend safety with a "Safe" rating. QCOM is a Dividend Contender with 23 years of consecutive increases.
Verdict
Yield Analysis
QCOM yields 0.02% more than TXN. In dollar terms, QCOM pays $3.52/share vs TXN's $5.50/share annually.
Dividend Growth
QCOM: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 7.0% and the 10-year rate of 6.1%.
TXN: Dividend growth is accelerating — the 3-year CAGR of 20.6% exceeds the 5-year rate of 14.6% and the 10-year rate of 17.8%.
Dividend Safety
QCOM: The payout ratio of 71% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
TXN: The payout ratio of 1% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.0x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in QCOM vs TXN today?
At $140.78 per share, $10,000 buys about 71.0 shares of Qualcomm Inc/De (QCOM). Each share pays $3.52 per year in dividends, so the position starts out generating roughly $250 per year — about $21 a month.
At $226.09 per share, $10,000 buys about 44.2 shares of Texas Instruments Inc (TXN). Each share pays $5.50 per year in dividends, so the position starts out generating roughly $243 per year — about $20 a month.
On day one the two positions generate nearly identical income; the difference comes from what happens to each dividend afterward.
What could $10,000 of QCOM or TXN income look like in 10 years?
Qualcomm Inc/De (QCOM) has raised its dividend about 7.0% a year over the past five years. If that pace held, the $251 per year that $10,000 generates today at the current 2.51% yield would reach $492 per year by 2036 — a 4.9% yield on the original cost.
Texas Instruments Inc (TXN) has raised its dividend about 14.6% a year over the past five years. If that pace held, the $249 per year that $10,000 generates today at the current 2.49% yield would reach $972 per year by 2036 — a 9.7% yield on the original cost.
On those trailing rates, TXN pays more in 2036: $972 versus $492 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
Can QCOM and TXN afford their dividends?
Qualcomm Inc/De (QCOM) earns $4.96 per share against $3.52 paid out in dividends — 1.4x coverage (a 71% payout ratio).
Texas Instruments Inc (TXN) earns $5.45 per share against $5.50 paid out in dividends — 1.0x coverage (a 1% payout ratio).
QCOM's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for TXN if earnings weaken.
Which fits an early-retirement income portfolio better, QCOM or TXN?
For income you need right now, Qualcomm Inc/De (QCOM) leads: $100,000 invested today pays about $209 a month at the current 2.51% yield, versus $207 a month from Texas Instruments Inc (TXN) at 2.49%.
With a decade or more before the income is needed, TXN's faster dividend growth (14.6% vs 7.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: QCOM has raised its dividend 23 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $631/yr in QCOM vs $1,243/yr in TXN by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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