10 Best Telecom Dividend Stocks To Buy for 2024

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

Number of Hedge Fund Holders: 60

Cisco Systems, Inc. (NASDAQ:CSCO) ranks fourth on our list of the best dividend stocks in the telecom sector. The California-based digital communications technology company reported revenue of $13.8 billion in fiscal Q1 2025, marking a 6% decrease from the previous year. However, this figure exceeded analysts’ expectations by $70.5 million. The company’s net income for the quarter was $2.7 billion. In addition to strong financial results, it completed acquisitions of DeepFactor, Inc., a private firm specializing in cloud-native application security, and Robust Intelligence, Inc., a private company providing AI security solutions. The stock has surged by over 14% since the start of 2024.

In its latest quarterly earnings report, Cisco Systems, Inc. (NASDAQ:CSCO) highlighted that its customers are prioritizing investments in essential infrastructure to support AI development. The company emphasized that its diverse portfolio positions it uniquely to capitalize on this trend. Its revenue, gross margin, and earnings per share all surpassed expectations, reaching the higher end or exceeding the provided guidance range, demonstrating strong operating leverage.

Cisco Systems, Inc. (NASDAQ:CSCO) has a strong balance sheet with ample cash to support its dividend payments. In fiscal Q1 2025, the company reported an operating cash flow of $3.7 billion, which showed a 54% growth from the same period last year. It ended the quarter with $18.7 billion available in cash and cash equivalents. The company remained committed to its shareholder return, paying $1.6 billion to investors through dividends. Currently, it offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.78%, as of December 19. Cisco Systems, Inc. (NASDAQ:CSCO) has been rewarding shareholders with growing dividends for the past 17 years.

According to Insider Monkey’s database of Q3 2024, 60 hedge funds held stakes in Cisco Systems, Inc. (NASDAQ:CSCO), down from 61 in the preceding quarter. These stakes have a collective value of more than $3 billion. With over 11.7 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.