Qualcomm announced on Monday that it will buy back $15 billion of its stock and hike its dividend by 14 percent. TheStreet’s Jim Cramer says investors should understand a buyback is short-term and what matters is earnings growth. He says right now he doesn’t see great Qualcomm earnings growth and that’s why he’s more tempted to sell the stock than buy it. The buyback accounts for 12 percent of the company. How can they do that? Cramer explains it’s because they don’t put up plants, they spew cash, they raise the dividend and do the buyback and overnight the company goes from growth to value and then back to growth but he says let’s be careful because earnings growth is key.
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