Cisco Systems, Inc. (NASDAQ:CSCO) Announces $0.42 Quarterly Dividend

Key Points

• Cisco declared a quarterly dividend of $0.42 per share, payable October 21 to shareholders of record October 2. The annualized dividend is $1.68, yielding approximately 1.4%, and marks 13 consecutive years of annual dividend increases.
• Cisco’s latest quarterly results exceeded expectations, with earnings of $1.22 per share and revenue of $17.25 billion, up 17.6% year over year. Its 41.8% payout ratio indicates the dividend remains well covered by earnings.
• Analyst sentiment is broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $123.14, while shares recently traded at $123.88.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) declared a quarterly dividend on Wednesday, August 12th. Stockholders of record on Friday, October 2nd will be given a dividend of 0.42 per share by the network equipment provider on Wednesday, October 21st. This represents a c) dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend is Friday, October 2nd.

Cisco Systems has increased its dividend payment by an average of 0.0%per year over the last three years and has raised its dividend annually for the last 13 consecutive years. Cisco Systems has a payout ratio of 41.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Cisco Systems to earn $4.00 per share next year, which means the company should continue to be able to cover its $1.68 annual dividend with an expected future payout ratio of 42.0%.

Cisco Systems Stock Up 2.9%

Shares of NASDAQ:CSCO opened at $123.88 on Thursday. The stock has a market cap of $488.27 billion, a price-to-earnings ratio of 40.22, a PEG ratio of 2.71 and a beta of 1.02. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. Cisco Systems has a 12-month low of $65.75 and a 12-month high of $130.37. The business's 50 day moving average is $117.56 and its 200 day moving average is $98.72.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same period in the prior year, the firm posted $0.99 EPS. Cisco Systems's quarterly revenue was up 17.6% compared to the same quarter last year. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. On average, sell-side analysts forecast that Cisco Systems will post 3.54 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. BNP Paribas Exane increased their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. HSBC upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating and boosted their price target for the stock from $77.00 to $137.00 in a report on Friday, May 15th. CICC Research increased their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, May 18th. KeyCorp lifted their target price on shares of Cisco Systems from $125.00 to $130.00 and gave the stock an "overweight" rating in a research report on Thursday, June 25th. Finally, Argus boosted their target price on Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a research note on Tuesday, May 19th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $123.14.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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