June 01, 2026 a 03:31 pm

CSCO: Dividend Analysis - Cisco Systems, Inc.

📊 Overview

Cisco Systems, Inc. operates within the technology sector, offering a dividend yield of 1.38%. With a current dividend per share standing at 1.62 USD, the company has delivered dividends consistently over 16 years. Importantly, there hasn't been any recent cut or suspension in its dividend policy.

Sector	Dividend Yield	Current Dividend Per Share	Dividend History Years	Last Cut or Suspension
Technology	1.38%	1.62 USD	16 years	None

📈 Dividend History

The dividend history of Cisco underscores its commitment to returning capital to shareholders. Dividends serve as a vital metric in evaluating a company's profitability and financial health over time. The consistently increasing dividends reflect Cisco's robust financial performance.

Year	Dividend Per Share (USD)
2026	1.25
2025	1.63
2024	1.59
2023	1.55
2022	1.51

📉 Dividend Growth

Analyzing the dividend growth gives insight into the potential future dividend payments. Stable growth is a positive indicator of a company's future performance.

Time	Growth
3 years	2.58%
5 years	2.65%

The average dividend growth is 2.65% over 5 years. This shows moderate but steady dividend growth.

✅ Payout Ratio

The payout ratio is crucial in assessing how much of a company's earnings are being returned to shareholders. A balanced ratio indicates prudent financial management while maintaining shareholder returns.

Key Figure	Ratio
EPS-based	53.53%
Free Cash Flow-based	50.58%

The EPS-based payout ratio of 53.53% and FCF ratio of 50.58% imply sustainable dividend distributions without over-leveraging the company.

Cashflow & Capital Efficiency

Evaluating cash flow and capital efficiency helps in understanding Cisco's ability to maintain and grow dividends efficiently.

Year	Free Cash Flow Yield	Earnings Yield	Capex / Operating Cash Flow	Stock Compensation / Revenue	Free Cash Flow / Operating Cash Flow
2025	4.87%	3.73%	6.38%	6.43%	93.62%
2024	5.27%	5.33%	6.16%	5.71%	93.84%
2023	8.93%	5.92%	4.27%	4.13%	95.73%

Cisco's cash flow efficiency, demonstrated by a consistently high Free Cash Flow / Operating Cash Flow ratio, shows the company's strong capacity to cover its dividends from cash flows.

⚠️ Balance Sheet & Leverage Analysis

Cisco's leverage ratios and balance sheet metrics illustrate its overall financial stability, ensuring the company can handle its debt while responsibly managing its capital structure.

Year	Debt to Equity	Debt to Assets	Debt to Capital	Net Debt to EBITDA	Current Ratio	Quick Ratio	Financial Leverage
2025	0.60	0.23	0.37	1.28	1.00	0.91	2.61
2024	0.68	0.25	0.41	1.49	0.91	0.83	2.74
2023	0.19	0.08	0.16	-0.10	1.38	1.27	2.30

Cisco's particular strength in debt management, indicated by the low debt-to-equity ratio, assures its capacity to pursue possible growth opportunities efficiently.

Fundamental Strength & Profitability

The profitability ratios reflect Cisco's efficiency and capacity to convert sales into actual profit, affecting dividend sustainability and growth potential.

Year	ROE	ROA	Net Margin	EBIT Margin	EBITDA Margin	Gross Margin	R&D / Revenue
2025	21.73%	8.32%	17.97%	22.09%	27.14%	64.94%	16.42%
2024	22.70%	8.29%	19.18%	24.61%	29.27%	64.73%	14.84%
2023	28.44%	12.38%	22.13%	27.62%	30.65%	62.73%	13.25%

Strong profitability margins and a high return on equity indicate the company's strong operational management and robust financial health, key drivers for potential dividend increases.

📌 Price Development

Dividend Scoring System

Category	Score	Indicator
Dividend yield	3
Dividend stability	4
Dividend growth	3
Payout ratio	3
Financial stability	4
Dividend continuity	4
Cashflow Coverage	4
Balance Sheet Quality	5

Final Rating

Cisco Systems, Inc. proves to be a strong candidate for dividend-focused portfolios, offering investors a blend of financial stability, steady growth, and a manageable payout ratio. Its strong balance sheet and continuing history of dividend payouts make it a reliable choice for income-seeking investors, albeit with a moderate growth profile.