10 Best DRIP Stocks To Own Now

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

Number of Hedge Fund Holders: 84

Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based multinational technology company that mainly specializes in networking hardware, software, and telecommunications equipment. The company recently announced solid fiscal Q2 2025 earnings. It posted adjusted earnings per share of $0.94 on revenue of $13.99 billion, surpassing analysts’ expectations of $0.91 per share on $13.87 billion in sales. Revenue grew 9.4% YoY, while AI infrastructure orders reached $350 million. Management noted that total product orders increased by 29% compared to the previous year, or 11% when excluding contributions from Splunk.

Cisco Systems, Inc. (NASDAQ:CSCO) remains the leading company in enterprise networking, maintaining a strong presence in both traditional and modern network infrastructures. The company holds a significant market share in wireless access, switching, and routing, while also securing key positions in security and collaboration tools. With the increasing adoption of hybrid cloud solutions and flexible work models, Cisco is well-positioned to benefit from these trends. In addition, its comprehensive suite of features in integrated security and networking gives it a competitive edge in the industry.

Cisco Systems, Inc. (NASDAQ:CSCO)’s cash position also remained strong in the most recent quarter. The company’s operating cash flow reached $2.2 billion, reflecting a 177% increase from the $0.8 billion reported in the same quarter of fiscal 2024. It ended the quarter with nearly $17 billion available in cash and cash equivalents. On February 12, the company declared a 3% hike in its quarterly dividend to $0.41 per share. Through this increase, the company stretched its dividend growth streak to 18 years. The stock has a dividend yield of 2.56%, as of February 23.