Cisco Systems (CSCO): A Steady Performer Among the Dogs of the Dow

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Cisco Systems (CSCO): A Steady Performer Among the Dogs of the Dow

A technician in a laboratory, overseeing cutting edge cybersecurity solutions.

Cisco Systems, Inc. (NASDAQ:CSCO) is widely recognized for its networking, cybersecurity, software, and cloud computing solutions. It produces routers and switches that use the Internet Protocol to move data across networks.

Artificial intelligence has become a major growth area for Cisco Systems, Inc. (NASDAQ:CSCO), with AI-related revenue exceeding $1 billion in 2024. Cisco aims to at least double that figure in 2025. A key factor in this expansion has been its $28 billion acquisition of Splunk, completed last year, which is intended to strengthen customers’ capabilities in networking, security, and AI.

Cisco Systems, Inc. (NASDAQ:CSCO) reported strong earnings in its fiscal Q3 2025. The company’s revenue came in at $14.15 billion, which showed an 11.4% growth from the same period last year. The revenue also beat analysts’ estimates by $91.4 million. Orders for AI infrastructure from webscale clients surpassed $600 million, allowing the company to hit its $1 billion goal a quarter ahead of schedule. This strong performance in AI is driven by the strength of its secure networking solutions, strong global alliances, and the value it consistently delivers to customers.

Cisco Systems, Inc. (NASDAQ:CSCO) generated an operating cash flow of $4.1 billion during the quarter, and it returned $1.6 billion to investors through dividends. In addition, it has raised its payouts for 18 consecutive years. Currently, it offers a quarterly dividend of $0.41 per share and has a dividend yield of 2.39%, as of July 26.

While we acknowledge the potential of CSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.