UPDATE 2-Qualcomm raises div, to buy back more shares

NEW YORK, March 1 (Reuters) - Chip maker Qualcomm Inc said it was raising its quarterly dividend and launching a share buyback after the end of a previous plan.

The moves, which helped the company's shares rise more than 2 percent, come as Qualcomm struggles with sluggish demand for cellphone chips and increasing competition.

Qualcomm said on Monday that its board had approved a 12 percent increase in the quarterly cash dividend to 19 cents per share from a previous 17 cents, payable after March 28.

In late January, Qualcomm cut its full-year revenue outlook as well as targets for the current quarter, citing competitive pricing and a slow recovery in the mobile chip market.

Qualcomm shares rose to $36.36 in after-hours trade after closing at $35.56 in regular trading, down three percent.

(Reporting by Ritsuko Ando; Editing by Ted Kerr) Keywords: QUALCOMM/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.