Income Stocks Spotlight: What Makes Cisco Systems (CSCO) Stand Out
Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 11 Best Income Stocks to Buy According to Hedge Funds.
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Cisco Systems, Inc. (NASDAQ:CSCO) is a leading technology company known for its networking, security, software, and cloud computing solutions. It builds routers and switches that help transmit data across networks. In the third quarter of fiscal 2025, the company reported $14.1 billion in revenue, marking an 11% increase from the previous year. Earnings per share also rose 35% to $0.62.
Artificial intelligence has become a key growth area for Cisco Systems, Inc. (NASDAQ:CSCO), generating over $1 billion in AI-related revenue in 2024. The company aims to at least double that figure in 2025. Its recent $28 billion acquisition of Splunk has also played a major role in expanding its capabilities, particularly in network management, security, and AI integration.
Cisco Systems, Inc. (NASDAQ:CSCO) currently pays a quarterly dividend of $0.41 per share and has a dividend yield of 2.41%, as of July 31. The company has been rewarding its shareholders with growing dividends for the past 18 years, which makes it one of the best dividend stocks for income investors.
While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
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Disclosure: None.
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