QUALCOMM, Inc. (NASDAQ:QCOM) has just announced that it will increase its dividend and begin a new share buyback program.  The stock is up 2 percent in late morning trades.

Reuters reports that the company will increase its quarterly cash dividend from 25 cents per share to 35 cents per share. That’s a 40 percent increase, and it will go into effect for all quarterly dividend payments after March 27.

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QUALCOMM, Inc. (NASDAQ:QCOM) has also introduced a new stock buyback program worth $5 billion. The program doesn’t have an expiration date, and it replaces the company’s previous $4 billion buyback plan. Qualcomm had repurchased about $1.5 billion worth of shares under the previous program, leaving approximately $2.5 billion in repurchase authority left on that program.

The mobile chip maker said it has returned almost $20 billion to stockholders since 2003, using a combination of dividend payments and buyback programs.

“Our business model continues to generate strong operating cash flows that enable us to invest in and execute on our strategic priorities, while also returning capital to shareholders,” Qualcomm chairman and CEO Paul E. Jacobs said in a company statement.

QUALCOMM, Inc. (NASDAQ:QCOM)’s stock has been rising slowly in recent weeks. The company reported a 29 percent growth in its revenues and 36 percent increase in profits for its fourth quarter, smashing the expectations of Wall Street. It also gave strong guidance for its second quarter and increased its financial targets for this year. The company’s strong guidance is based on evidence of growth in the mobile device market.

Bloomberg reports that QUALCOMM, Inc. (NASDAQ:QCOM) had about $13.3 billion in cash and short-term investments as of Dec. 30.