5 Best NASDAQ Dividend Stocks To Buy

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

Number of Hedge Fund Shareholders: 63

Dividend Yield: 3.33%

Cisco Systems, Inc. (NASDAQ:CSCO) has an 11-year run of dividend growth, though that growth has slowed considerably in the past three years, with annual raises of just $0.04 in 2022 and 2021 and $0.05 in 2020. The good news is that Cisco shares already sport a nice dividend yield and the company’s payout ratio in less than 50%, so the shares should be assured of continued growth in the coming years. Cisco’s fiscal Q4 2022 adjusted earnings dipped 1% year-over-year, but the company’s expects between 4% and 6% growth in its fiscal year 2023.

Hedge fund ownership of Cisco Systems, Inc. (NASDAQ:CSCO) has remained remarkably steady over the years, as numerous funds continue to be bullish long-term shareholders of the company. Several major quant funds own large stakes in CSCO, including John Overdeck and David Siegel’s Two Sigma Advisors, Jim Simons’ Renaissance Technologies, and Cliff Asness’ AQR Capital Management.

The Carillon Eagle Growth & Income Fund expects strong demand for Cisco Systems, Inc. (NASDAQ:CSCO)’s routing and switching services, as detailed in the fund’s Q1 2022 investor letter:

“Cisco Systems (NASDAQ:CSCO) traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”