Is Cisco Systems (CSCO) Among the Best NASDAQ Dividend Stocks to Buy?

As the market continues to evolve, investors are increasingly seeking stable, dividend-paying stocks to add to their portfolios. Cisco Systems (CSCO), a leading provider of networking and telecommunications equipment, has been a popular choice among investors due to its consistent dividend payments and growth. In this article, we will explore whether Cisco Systems is indeed one of the best NASDAQ dividend stocks to buy.



Cisco Systems has a long history of paying dividends to its shareholders. The company initiated its dividend in 2011 and has consistently increased the payout each year since then. As of 2025, Cisco Systems' annual dividend is $1.60 per share, with a yield of 2.66%. The company pays its dividend on a quarterly basis, with the last ex-dividend date being January 3, 2025.

One of the key factors to consider when evaluating a dividend stock is its payout ratio. The payout ratio measures the proportion of earnings that the company distributes as dividends to shareholders. A lower payout ratio indicates that the company retains more of its earnings, allowing for reinvestment in the business and future growth. As of 2023-10-31, Cisco Systems Inc's dividend payout ratio is 0.47, which is a reasonable level for a company like Cisco. This suggests that the company is distributing a manageable portion of its earnings as dividends, leaving room for reinvestment and future growth.



Another important aspect to consider is the company's balance sheet and cash flow. A strong balance sheet and positive cash flow indicate that the company has the financial resources to continue paying dividends, even during economic downturns. Cisco Systems maintains a strong balance sheet, with a cash balance of over $60 billion and manageable debt levels. The company's cash flow has also been positive, with free cash flow of $12.61 billion in the most recent quarter.

Cisco Systems' recent financial performance has been solid, with revenue and EPS growth over the past five years. In the 12 months ended in late January 2025, Cisco grew revenue by over 3% and EPS by nearly 22%. This strong performance allows the company to generate sufficient cash flow to support its dividend payments.



In conclusion, Cisco Systems' consistent dividend payments, reasonable payout ratio, strong balance sheet, and solid financial performance make it an attractive choice for investors seeking stable, dividend-paying stocks. The company's history of dividend growth and commitment to rewarding shareholders indicate that it is likely to continue paying and increasing its dividend in the future. However, as with any investment, it is essential to conduct thorough research and consider your personal financial situation before making any investment decisions.