InterDigital, Inc. (NASDAQ:IDCC) Increases Dividend to $0.75 Per Share

InterDigital, Inc. (NASDAQ:IDCC) announced a quarterly dividend on Wednesday, September 9th. Stockholders of record on Wednesday, October 14th will be paid a dividend of 0.75 per share by the Wireless communications provider on Wednesday, October 28th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, October 14th. This is a 7.1% increase from InterDigital’s previous quarterly dividend of $0.70.

InterDigital has raised its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 3 consecutive years. InterDigital has a dividend payout ratio of 42.4% meaning its dividend is sufficiently covered by earnings. Analysts expect InterDigital to earn $9.02 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 31.0%.

InterDigital Price Performance

InterDigital stock opened at $339.34 on Thursday. The company has a current ratio of 1.74, a quick ratio of 1.74 and a debt-to-equity ratio of 0.01. The company has a fifty day simple moving average of $307.62 and a 200-day simple moving average of $310.76. The stock has a market cap of $8.76 billion, a P/E ratio of 39.14 and a beta of 1.43. InterDigital has a 12-month low of $249.14 and a 12-month high of $412.60.

InterDigital (NASDAQ:IDCC) last posted its earnings results on Thursday, July 30th. The Wireless communications provider reported $4.62 EPS for the quarter, beating the consensus estimate of $0.90 by $3.72. InterDigital had a return on equity of 28.17% and a net margin of 38.32%.The firm had revenue of $260.17 million for the quarter, compared to analyst estimates of $143.10 million. During the same quarter in the prior year, the company posted $6.52 earnings per share. InterDigital’s revenue for the quarter was down 13.4% compared to the same quarter last year. InterDigital has set its FY 2026 guidance at 10.850-12.810 EPS and its Q3 2026 guidance at 1.940-2.130 EPS. Equities analysts expect that InterDigital will post 9.76 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on IDCC. Weiss Ratings lowered InterDigital from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. Zacks Research upgraded shares of InterDigital from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $416.67.

About InterDigital

InterDigital, Inc is a mobile and video technology research and development company that designs and licenses wireless communications and video compression innovations. Its patent portfolio encompasses key standards across 3G, 4G LTE and 5G wireless networks, as well as video and multimedia technologies. By focusing on fundamental technology creation rather than device manufacturing, InterDigital delivers core intellectual property to smartphone manufacturers, chipset vendors and telecommunications operators worldwide.

The company’s principal services include patent licensing, technology evaluation and consulting.