15 Best NASDAQ Dividend Stocks To Buy

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

Number of Hedge Fund Holders: 60

Cisco Systems, Inc. (NASDAQ:CSCO) is a multinational American tech company specializing in networking hardware, software, and telecommunications equipment. In its latest quarterly earnings, the company noted that its clients are prioritizing critical infrastructure investments to support AI development. The company emphasized that its diverse range of products positions it well to capitalize on this trend. Cisco’s revenue, gross margin, and earnings per share all exceeded expectations, reaching the high end or surpassing the projected guidance, showcasing substantial operating leverage.

Cisco Systems, Inc. (NASDAQ:CSCO) posted solid earnings for fiscal Q1 2025, reporting revenues of $13.8 billion. While this represented a 6% decrease compared to the previous year, it exceeded analysts’ expectations by $70.5 million. Net income for the quarter was $2.7 billion, and the company maintained a strong financial position. In addition, it made significant strides in its development efforts, acquiring DeepFactor, Inc., a firm specializing in cloud-native application security, and Robust Intelligence, Inc., a company focused on AI security solutions. In the past 12 months, the stock has surged by nearly 19%.

In addition to its strong earnings, Cisco Systems, Inc. (NASDAQ:CSCO) showed a robust cash position, ensuring it can comfortably cover its dividend payments. In the latest quarter, the company generated $3.7 billion in operating cash flow, marking a 54% increase compared to the previous year. By the end of the quarter, it had $18.7 billion in cash and cash equivalents. Additionally, Cisco returned $1.6 billion to shareholders through dividend payments. It is one of the best dividend stocks on our list as the company has been rewarding shareholders with growing dividends for the past 17 years. Currently, it offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.67%, as of January 15.

With a collective stake value of over $3 billion, 60 hedge funds tracked by Insider Monkey owned positions in Cisco Systems, Inc. (NASDAQ:CSCO) in Q3 2024. Among these hedge funds, Arrowstreet Capital was the company’s leading stakeholder in Q3.