Dividend Boosters: Qualcomm, Southern , PACCAR Add Juice to Yields

Dividends are on the rise for key names throughout chips, utilities, and transportation. This contains one of many semiconductor business’s highest-yielding shares. Traders are taking discover as this title is simply now getting its ft moist within the synthetic intelligence (AI) buildout.

Qualcomm Sees Hyperscaler Demand, Sports activities High Yield Amongst Chip Shares

First up is semiconductor giant Qualcomm (NASDAQ: QCOM). Not like many different semiconductor shares, Qualcomm has posted disappointing returns over the current previous. From the start of 2025 to the top of March 2026, Qualcomm shares have been down round 15%. This got here because the agency had not been in a position to take part a lot within the AI buildout, deriving most of its income from smartphone chips.

Nonetheless, this narrative has shifted considerably in April. In its latest earnings call, Qualcomm stated IT was “getting into the customized silicon house, starting our ramp with a number one hyperscaler, and we anticipate preliminary shipments within the December quarter.” Notably, Qualcomm didn’t specify precisely what forms of chips IT is creating for this buyer. Nonetheless, IT plans to disclose extra at its Investor Day in June.

General, Qualcomm rose practically 40% in April, with a big 15% achieve coming after its earnings report. This pushes the inventory’s complete return because the begin of 2025 into constructive territory, now sitting above 15%.

Qualcomm additionally introduced a 3.4% dividend increase in April, shifting its quarterly fee to 92 cents per share. This provides the inventory a considerable indicated dividend yield of round 2.2%, with Qualcomm having a top-five yield amongst U.S. large-cap chip shares. The corporate plans to pay its subsequent quarterly dividend on June 25 to shareholders of document as of the June 4 shut.

Southern’s Knowledge Middle Utilization Rises 42%, Yield Above 3%

Subsequent up is utility firm Southern (NYSE: SO). The inventory has put up strong efficiency because the begin of 2025, offering a complete return above 20%. That is solely reasonably behind the S&P 500’s return over this era, which sits close to 25%.

For Southern, 2025 was a strong 12 months financially, with the corporate posting revenue growth of 10.6% 12 months over 12 months (YOY), a robust acceleration versus 5.8% development in 2024. Adjusted earnings per share (EPS) additionally climbed 6%, hitting the “very prime” of its steering vary.

Giant load demand, or vitality demanded by very giant clients, is spiking. Knowledge middle energy utilization elevated by 42% YOY in its latest quarter, and the corporate has a large-load pipeline of over 75 gigawatts.

The corporate additionally just lately introduced a average 2.7% increase to its quarterly dividend. This brings the agency’s quarterly fee to 76 cents per share. General, this provides the inventory a major indicated dividend yield close to 3.2%. That is under the common yield of utility shares, which sits close to 3.75%. Nonetheless, IT is far larger than the yield provided by the S&P 500 Index, which is barely round 1%. Southern plans to make its subsequent quarterly fee on June 8 to shareholders of document as of the Could 18 shut.

PACCAR Eyes North American Restoration, Boosts Dividend 6%

Truck producer PACCAR (NASDAQ: PCAR) delivered under market efficiency in 2025, with a complete return of 8%. Nonetheless, the inventory started to take off close to the top of the 12 months. For the reason that starting of November 2025, shares have delivered a complete return of properly over 15%.

PACCAR confronted a troublesome surroundings in 2025, with tariffs damaging gross sales and profitability. Revenues fell by 17%, marking the corporate’s worst 12 months for development since 2020.

Moreover, adjusted working margin contracted by practically 470 foundation factors, even bigger than its 2019 to 2020 contraction.

Nonetheless, the agency is longing for a restoration in 2026. PACCAR expects to promote between 230,000 and 270,000 of its Class 8 vehicles to North American markets through the 12 months. On the midpoint, this might be an roughly 7.3% enhance over its 2025 Class 8 unit gross sales of 233,000.

In the meantime, IT sees above 16-ton European gross sales holding regular, projecting 300,000 models on the midpoint versus 298,000 in 2025.

PACCAR has additionally introduced a strong 6% increase to its quarterly dividend, boosting its payout to 35 cents per share. This provides the inventory a significant indicated dividend yield close to 1.1%. PACCAR expects to make its subsequent quarterly fee on June 3 to shareholders of document as of the Could 13 shut.

Qualcomm: Analysts Stay Cautious as Shares Soar

Amongst this group, Qualcomm is probably the most fascinating title going ahead. This large chip firm has been an afterthought amid the AI growth. The prospect that IT might start to take part meaningfully is a major constructive. That is much more true considering reports that OpenAI is working with the company to develop chips for its smartphone push.

Whereas Wall Road analysts significantly elevated their worth targets on Qualcomm after its earnings, many have but to forecast upside forward. The MarketBeat consensus price target on Qualcomm sits close to $172, implying shares are pretty valued in early Could. Moreover, the common of targets up to date after the corporate’s newest earnings report is decrease, at round $170. General, Qualcomm nonetheless has work to do to really shift the narrative round its inventory.

Corporations Talked about in This Article:

Firm	Present Value	Value Change	Dividend Yield	P/E Ratio	Consensus Score	Consensus Value Goal
Qualcomm (QCOM)	$168.38	-4.9%	2.11%	18.30	Maintain	$172.40
Southern (SO)	$95.97	-0.8%	3.08%	24.42	Maintain	$99.85
PACCAR (PCAR)	$114.37	-1.5%	1.15%	24.33	Maintain	$117.83

About Leo Miller

Expertise

Leo Miller has been a contributing writer for DividendStocks.com since 2024.

• Skilled Background: Leo Miller is a monetary author with a background in funding analysis and market evaluation. He has held roles as an funding analysis affiliate at Laird Norton Wetherby and as a analysis analyst at Sungarden Funding Publishing, the place he gained hands-on expertise evaluating equities and portfolio methods.
• Credentials: He holds a Bachelor of Enterprise Administration in Finance from the College of Washington’s Foster College of Enterprise, a top-ranked public enterprise faculty. He has handed the CFA Stage II examination.
• Finance Expertise: Leo started researching and investing in gold mining shares in 2019 and began writing about Finance and investing in 2021. He joined DividendStocks.com as a contributing author in 2024, the place he covers each shares and ETFs. A robust analysis basis and direct publicity to monetary markets form his views.
• Writing Focus: He focuses on tech shares, dividend-paying corporations, ETFs, and value-oriented alternatives. His work emphasizes readability, actionable insights, and training for buyers in any respect ranges.
• Funding Method: Leo follows a disciplined, long-term investing technique rooted in basic evaluation, with a robust give attention to economics, sector and business analysis, and passive investing ideas.
• Inspiration: Leo finds the inventory market endlessly compelling and enjoys the problem of separating significant knowledge from noise. He’s keen about analyzing what makes companies stand out—and sharing these insights to information knowledgeable funding selections. As he places IT, “Performing sturdy evaluation requires separating the wheat from the chaff.”
• Enjoyable Reality: Leo credit his grandfather for sparking his curiosity in investing and is a lifelong animal lover.
• Areas of Experience: Elementary evaluation, economics, business and sector evaluation

 

Schooling

Bachelor in Enterprise Administration, Finance, Foster College of Enterprise at College of Washington