Should You Buy Qualcomm Stock For Its Cash?

Over the last twelve months, Qualcomm (QCOM) generated free cash flow equal to 5.5% of its market value. That outpaces the 4.4% yield for the median S&P 500 company. A yield above the median can mean a business that is either on sale or expected to shrink. Qualcomm's revenue fell in each of its last two quarters. So is that cash the sign of a business on sale, or of one that is shrinking.