InterDigital Inc (IDCC)

[rmarchma]

Wow Cramer's piece on IDCC was compelling

I haven't watched Jim Cramer in quite a while, but I do believe he still has a faithful following. To do a 6 to 7 minute promo, but rather accurate, session on just IDCC was pretty impressive. Cramer is correct in that IDCC has quietly been delivering the goods lately, but its lack of national exposure has limited the share price appreciation.

The initiation of the cash dividend should help draw more needed attention to the stock. Cramer stated that the cash dividend was the catalyst that motivated him to do the promo piece on IDCC. If IDCC could garner more analysts coverage, bigger institutional investors, and hopefully a prestigious Wall Street institution's recommendation along the way, then the stock could really be off to the races.

If IDCC can keep delivering the goods in the future, and can keep increasing the dividend each year, then significant share price appreciation can and should be sustainable for the longer term. I believe Cramer thinks that IDCC has adequate room to keep increasing the dividend, as they started rather low at 1% of share price, rather than a more typical 2% to 3%. Increasing the cash dividend from 1% to 2% to 3% over time could do wonders for the stock price, as that would represent dividend increases of 100% to 200%.