Wireless chip maker Qualcomm Inc. (NASDAQ: QCOM), said its Board has approved a 13 percent increase in its quarterly cash dividend.

California-based Qualcomm will now pay a dividend of 21.5 cents a share, up from 19 cents a share. The dividend hike will be effective for quarterly dividends payable after March 25, 2011

This dividend increase will raise the annualized dividend payout to $0.86 per share of common stock.

Our business model continues to drive strong cash flows enabling significant investments in our strategic business initiatives while continuing to return capital to stockholders.  Since these programs began in 2003, the company has returned $15.2 billion to stockholders through a combination of stock repurchases and cash dividends, Qualcomm CEO Paul Jacobs said in a statement.

Shares of Qualcomm closed Monday's regular trading session at $57.58 on Nasdaq.