10 Best Debt Free Dividend Stocks to Invest in

5. A10 Networks, Inc. (NYSE:ATEN)

Number of Hedge Fund Holders: 20

Market Cap as of December 7: $1.51 billion

Enterprise Value as of December 7: $1.34 billion

A10 Networks, Inc. (NYSE:ATEN) is a California-based company that specializes in providing application networking solutions that help organizations maintain the availability, performance, and security of their data center applications and networks. The company offers a range of services, including cloud storage, enterprise solutions, security products, data center support, application delivery, load balancing, and protection against distributed denial of service (DDoS) attacks.

A10 Networks, Inc. (NYSE:ATEN) reported revenue of $74.2 million for the fourth quarter of 2024, up 5% from $70.4 million in the fourth quarter of 2023. Enterprise revenue saw an 8% year-over-year increase, while service provider revenue grew by 4%. GAAP net income was $18.3 million, or 24.7% of revenue, equating to $0.24 per diluted share. This compares to net income of $17.9 million, or 25.4% of revenue, and $0.24 per diluted share in the same quarter of the previous year.

The stock has surged by over 56% in the past 12 months, outperforming the market. The reason for this growth could be that AI remains a key driver of overall spending, particularly for A10 Networks, Inc. (NYSE:ATEN)’s customers, due to the efficiency of the company’s high-throughput, low-latency solutions across various operating environments. These solutions reduce the total cost of ownership by consuming less power and incorporating integrated security features, providing a strong competitive edge in energy-intensive AI data centers.

A10 Networks, Inc. (NYSE:ATEN) ended the quarter with cash and investments totaling $195.6 million, an increase from $159.3 million as of December 31, 2023. The company generated $25.7 million in operating cash flow during the quarter. Moreover, it returned $10.2 million to investors, including $4.4 million in cash dividends during the quarter. ATEN is one of the best dividend stocks on our list as the company started paying dividends in 2021 and has paid regular dividends to shareholders since then. Currently, it pays a quarterly dividend of $0.06 per share and has a dividend yield of 1.16%, as of February 11.