Cisco Systems, Inc. (CSCO), Oracle Corporation (ORCL): The Key to Success is Networking

The company’s shares have been hammered over the past few months, and are down more than 10% in the last one year. However, a number of analysts are still not quite ready to recommend dumping the shares, at least not yet.

One positive note here for investors is that Intel Corporation (NASDAQ:INTC)’s shares are currently offering a dividend yield of over 3.8%. So, even without prospects for enormous growth in the near future, these shares could still pan out for income seeking investors.

The prospects going forward

Similar to with Intel, both Cisco Systems, Inc. (NASDAQ:CSCO) and Oracle Corporation (NASDAQ:ORCL) must be careful not to become outdated — and unwanted — with regard to their product offerings in the market. Therefore, another way that these firms are keeping their offerings and their shares moving forward is by collaborating in various areas.

For instance, for many years, Cisco’s networking technology has been both strengthening security and accelerating on Oracle’s solutions. This helps in simplifying deployment of Oracle’s databases and applications, while at the same time improving Oracle’s database and application performance.

Most investors realize that tech related stocks can move up or down in an instant, based on a particular product’s success or failure in the market. And today, as news travels much faster, tech investors should keep a constant eye on their holdings.

The bottom line

While all three companies are working to move into new areas — whether through product creation or acquisition — Cisco Systems, Inc. (NASDAQ:CSCO) may have better prospects for both share growth and dividend income combined.

With regards to Oracle Corporation (NASDAQ:ORCL), while offering a dividend yield of 0.70% to its shareholders, the key here may be in potential upward share price movement, although this may not happen right away. In the most recent fiscal quarter, Oracle was able to increase its net income, however, the company’s revenue was flat.

With Intel already trading above its one-year estimated target price, this stock is not likely suited for growth at present, although for those who want to take a chance on it, the shares’ dividend yield of just under 4% could offer at least some incentive.

The article These Tech Stocks Might Lead to Better Returns for Patient Investors originally appeared on Fool.com and is written by Nauman Aly.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.