Cisco Systems, Inc. (NASDAQ:CSCO) Shareholders Set to Receive $0.42 Quarterly Dividend

Key Points

• Cisco declared a quarterly dividend of $0.42 per share, equivalent to $1.68 annually and a 1.6% yield. Shareholders of record January 4 are scheduled to be paid January 20.
• The dividend appears well covered: Cisco’s payout ratio is 41.8%, and analysts expect a lower 34.6% payout ratio based on next year’s projected earnings.
• Cisco beat quarterly estimates, reporting EPS of $1.40 versus $1.33 expected and revenue of $18.52 billion versus $18.12 billion expected. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $129.14.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) announced a quarterly dividend on Thursday, November 12th. Shareholders of record on Monday, January 4th will be given a dividend of $0.42 per share by the network equipment provider on Wednesday, January 20th. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date is Monday, January 4th.

Cisco Systems has a payout ratio of 41.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Cisco Systems to earn $4.86 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 34.6%.

Cisco Systems Stock Up 1.2%

Shares of CSCO stock opened at $102.01 on Friday. The stock's 50-day simple moving average is $108.02 and its 200-day simple moving average is $102.13. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The firm has a market capitalization of $402.18 billion, a PE ratio of 30.54, a P/E/G ratio of 2.07 and a beta of 1.01. Cisco Systems has a fifty-two week low of $72.80 and a fifty-two week high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last announced its quarterly earnings data on Thursday, November 12th. The network equipment provider reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.07. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm had revenue of $18.52 billion during the quarter, compared to analysts' expectations of $18.12 billion. During the same period last year, the business posted $1.00 earnings per share. Cisco Systems has set its Q2 2027 guidance at 1.340-1.360 EPS and its FY 2027 guidance at 5.470-5.530 EPS. Equities analysts expect that Cisco Systems will post 4.48 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts have issued reports on CSCO shares. Barclays raised their price target on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 13th. Sanford C. Bernstein assumed coverage on shares of Cisco Systems in a research note on Wednesday, September 30th. They set a "market perform" rating and a $110.00 price objective for the company. HSBC downgraded shares of Cisco Systems from a "buy" rating to a "hold" rating and dropped their price objective for the company from $137.00 to $120.00 in a report on Friday, August 14th. Morgan Stanley lowered shares of Cisco Systems from an "overweight" rating to an "equal weight" rating and cut their price objective for the stock from $135.00 to $120.00 in a research note on Thursday, November 5th. Finally, Rosenblatt Securities raised their target price on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a "buy" rating in a report on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $129.14.

Cisco Systems Company Profile

Cisco Systems, Inc. develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks. The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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