InterDigital (IDCC) DIvidends Date & History

Key Takeaways

• InterDigital offers a forward dividend yield of 0.79%, providing modest income in the technology sector.
• Quarterly dividend of $0.70 per share, with the next ex-dividend date on April 8, 2026, and payment on April 22, 2026.
• Low payout ratio of 19.92% indicates strong sustainability backed by earnings and free cash flow.
• Dividend has grown at a 13.9% CAGR over five years, with recent increases to $0.70 quarterly.
• Higher yield than many software industry peers, where averages are near zero percent.
• Consistent quarterly payer for over 10 years, appealing for conservative income seekers.

Dividend Overview

InterDigital, Inc. (IDCC), a leader in wireless, video, and AI technology research and development, maintains a modest quarterly dividend policy. The forward annual dividend stands at $2.80 per share, yielding 0.79% based on recent trading levels, while the trailing yield is 0.74%. Payments occur quarterly, with the most recent ex-dividend date of April 8, 2026, and payment on April 22, 2026. This profile positions IDCC as a dividend growth stock rather than a high-yield play, offering reliable payouts supported by its patent licensing revenue model. The five-year average yield of 1.59% reflects variability tied to stock performance but underscores commitment to shareholders.

Dividend History and Growth

InterDigital has paid quarterly dividends consistently for over a decade, with no recorded cuts in recent history. The company has demonstrated solid growth, achieving a five-year compound annual growth rate (CAGR) of 13.9% in dividends per share and a three-year CAGR of 23%. Recent hikes include increases to $0.70 per share in 2025 and 2026, up from prior levels around $0.60, reflecting confidence in cash flows from its intellectual property portfolio. While not a Dividend Aristocrat with 25+ years of consecutive raises, IDCC's strategy emphasizes sustainable growth aligned with R&D advancements in 5G and AI technologies.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 19.92%—well below 50%, signaling ample earnings coverage. Free cash flow generation supports payouts, as the company benefits from recurring licensing revenues rather than capital-intensive operations. Debt levels are manageable, and profitability metrics, including high net margins around 48%, bolster stability. Projections indicate continued free cash flow growth, reinforcing the low-risk profile of the dividend even amid tech sector volatility.

Dividend Compared to Industry Peers

In the Software - Application industry, where many firms prioritize growth over dividends, IDCC's 0.79% yield stands out favorably against an industry average near zero percent. For context, peer Apple Inc. (AAPL) yields about 0.4%, while others like Intel (INTC) have suspended payouts. Comparable tech R&D names often offer no dividend, making IDCC's consistent income attractive relative to peers focused on reinvestment.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It excels at identifying dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to streamline your research.

Is This Stock Attractive for Dividend Investors?

InterDigital (IDCC) suits conservative dividend investors seeking modest yields with low risk in the technology space. Its sub-20% payout ratio and growing dividends appeal to those prioritizing sustainability over high income, particularly amid volatile tech earnings. Long-term holders may value the 10+ year payment history and alignment with secular trends in 5G, AI, and connected devices, which support licensing cash flows. However, the low 0.79% yield may not excite yield chasers, and exposure to patent litigation or R&D cycles adds moderate risk. Growth-oriented dividend investors could find the recent hikes and projected FCF expansion compelling for total returns. Overall, it fits portfolios balancing income stability with tech exposure, but suits patient investors comfortable with sector dynamics.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations