15 Best Dividend Paying Stocks to Buy Right Now

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

Number of Hedge Fund Holders: 97

On May 26, BofA raised its price recommendation on Cisco Systems, Inc. (NASDAQ:CSCO) to $135 from $114. It reiterated a Buy rating on the stock. The firm said Cisco’s fiscal third-quarter results, along with management’s comments about continued strong demand for Acacia products, reinforced its positive view of the optical networking market. According to the analyst, underlying demand in the sector remains healthy.

Cisco delivered a strong quarter. Revenue increased 12% year over year to $15.8 billion, while adjusted earnings rose 10% to $1.06 per diluted share. Those results came in ahead of Wall Street expectations, which had called for earnings of about $1.04 per share on revenue of roughly $15.5 billion.

The company’s outlook also impressed investors. Cisco issued full-year and next-quarter guidance that exceeded current analyst estimates by a wide margin. Revenue guidance came in about $1 billion above consensus forecasts, while earnings targets were roughly 10% higher than existing expectations. Management pointed to robust demand for AI data center infrastructure as a key growth driver. That demand more than offset uncertainty surrounding tariffs and relatively flat sales in the security business.

Product orders climbed 35% from the same period last year, giving Cisco a sizable backlog that could support revenue growth over the next several years.

Cisco Systems, Inc. (NASDAQ:CSCO) develops and sells technologies that power the internet. The company is bringing together its networking, security, collaboration, applications, and cloud offerings into a more integrated platform.

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