Qualcomm CEO emphasizes the importance of dividends in delivering value to shareholders.

• On Monday, Cristiano Amon, CEO of Qualcomm, informed CNBC's Jim Cramer that the company is currently prioritizing using dividends to create shareholder value instead of repurchasing its stock.
• Amon stated that we want to maintain strategic flexibility, including for M&A, as we see diversification benefiting the company and accelerating its growth.

Cristiano Amon, the CEO of the company, informed CNBC's Jim Cramer on Monday that the company is currently concentrating on utilizing dividends to enhance shareholder value instead of repurchasing its stock.

"In an interview on "Mad Money," Amon stated that we had increased our dividend and discussed annualized dividend targets, high single-digit growth rates, and low double-digit growth rates. Additionally, we will continue to look for opportunistic buyback."

On March 9, Qualcomm declared a 10% increase in its quarterly cash dividend, raising it from 68 cents to 75 cents per share of common stock, and increasing the annualized dividend payment to $3 per share of common stock.

Amon stated that we want to maintain strategic flexibility, including for M&A, as we see diversification benefiting the company and we want it to grow faster.

Qualcomm's CEO responded to Cramer's query about purchasing its own stock by stating that the company has no plans to do so. Despite JPMorgan removing Qualcomm from its April Analyst Focus list, the chip stock experienced a 4.64% increase on Monday, which was part of a broader rally in tech stocks.

The company announced on Monday that it had finished acquiring Arriver from SSW Partners in order to enhance its Advanced Driver Assistance System software.

Disclosure: Cramer's Charitable Trust owns shares of Qualcomm.

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