InterDigital Inc (IDCC)

[ddutta]

I think based on the current recurring revenue they can increase the quarterly dividend to $0.40 (or $1.60 yearly).

Here are the calculations:

Currently yearly recurring revenue:

Apple $110 million
Huawei $70 million
Samsung $70 million
Others $110 million
------------
Total Recurring Revenue $360 million

Less Annual Expenses $220 million (approx. $55 mil/quarter)
------------
Gross Profit $140 million
Less Taxes (35%) $49 million
------------
Net Profit $91 million

Or $2.50 per share (based on 36 million shrs out)

A $1.60/share yearly dividend out of $2.50 per share yearly net profit will give us a nice $80 price based on 2% yield, while we wait for additional licensees and 5G/iOT revenue growth.

JMHO