10 Best Income Stocks to Invest in Now

6. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 84

Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based global leader in digital communications technology, offering a wide range of networking hardware, software, and telecom equipment. The company remains a dominant force in enterprise networking, excelling in areas such as switching, routing, and wireless access, while also expanding its presence in cybersecurity and collaboration tools. As more companies transition to hybrid cloud setups and flexible work models, Cisco is well-positioned to capitalize on these trends through its integrated and secure networking solutions that give it a competitive edge.

In the second quarter of fiscal 2025, Cisco Systems, Inc. (NASDAQ:CSCO) reported results that exceeded expectations. Adjusted earnings came in at $0.94 per share on revenue of $13.99 billion, beating forecasts of $0.91 per share and $13.87 billion in revenue. Year-over-year, revenue rose by 9.4%, aided by $350 million in AI-related infrastructure orders. The company also saw a 29% increase in total product orders compared to the prior year, or 11% growth excluding the impact of its acquisition of Splunk.

Cisco Systems, Inc. (NASDAQ:CSCO) also reported a substantial boost in cash generation. Operating cash flow jumped 177% year-over-year to $2.2 billion, up from $800 million in the same quarter last year. The company ended the quarter with nearly $17 billion in cash and cash equivalents and has maintained 18 consecutive years of dividend growth, which makes it one of the best dividend stocks. It offers a quarterly dividend of $0.41 per share and has a dividend yield of 2.74%, as of May 9.