Qualcomm

Qualcomm is a leading designer of mobile chips and a dominant holder of wireless patents, earning money both from selling processors and modems for smartphones and from licensing its cellular technology to nearly every handset maker. It is now pushing into automotive, personal computers and the internet of things to broaden its base beyond phones. Qualcomm has raised its dividend for well over a decade, backed by high-margin licensing income that provides a cushion even when chip sales are soft. The yield is modest, reflecting a semiconductor company that also returns large sums through buybacks, but the combination of a growing payout and durable royalty streams supports a strong overall income profile.