13 Best Technology Dividend Stocks to Invest in

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

Number of Hedge Fund Holders: 84

Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational digital communications tech company that deals in networking hardware, software, and telecommunications equipment. In the past 12 months, the stock has surged by 15%, outperforming the broader market. The company has solidified its leadership in enterprise networking, maintaining a strong presence in both conventional and next-generation network technologies. Cisco continues to dominate key areas such as wireless access, switching, and routing while also playing an integral role in security and collaboration solutions. As businesses increasingly turn to hybrid cloud models and embrace more flexible work arrangements, the company stands to benefit from these shifting dynamics. Its broad portfolio of integrated networking and security tools provides a distinct competitive advantage.

In fiscal Q2 2025, Cisco Systems, Inc. (NASDAQ:CSCO) delivered better-than-expected results, reporting adjusted earnings of $0.94 per share on revenue of $13.99 billion—exceeding analyst forecasts of $0.91 in EPS and $13.87 billion in revenue. The company’s revenue rose 9.4% year-over-year, with AI infrastructure orders totaling $350 million. Management highlighted a 29% increase in total product orders compared to the previous year, or 11% growth excluding the impact from Splunk.

Cisco Systems, Inc. (NASDAQ:CSCO) also reported a robust cash performance, with operating cash flow climbing 177% year-over-year to $2.2 billion, up from $0.8 billion in the same quarter of fiscal year 2024. By the end of the quarter, the company held close to $17 billion in cash and equivalents. On February 12, Cisco announced a 3% hike in its quarterly dividend to $0.41 per share, marking the 18th consecutive year of dividend growth. As of April 10, the stock has a dividend yield of 2.9%.