VNE - Qualcomm Is A Dividend Growth Powerhouse Worth A Look

• Qualcomm is a high-quality capital appreciation and dividend growth opportunity with ample room for upside on both of these fronts.
• The company is a stellar shareholder value generator, defined as its forecasted ROIC ex-goodwill significantly exceeding its estimated WACC over the coming fiscal years.
• Qualcomm's growth trajectory is supported by its push into the automotive arena and the IoT trend, which are expected to grow its total addressable market opportunity over the next decade.
• Apple's pivot towards supplying its own chips in its iPhone lineup will create a drag on Qualcomm's growth ambitions, but in our view, Qualcomm is up to the challenge.
• The top end of our fair value estimate range sits at $206 per share of Qualcomm, derived through our rigorous discounted free cash flow analysis process.

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