Is Cisco, With a 3.2% Dividend Yield, Now As Reliable As Electricity?

There was another sign this week that tech companies are the new industrials: Cisco Systems (CSCO) raised its dividend.

The networking company started paying a dividend in April 2011. It raised the dividend by two cents to 8 cents per share in April. Now, even though its sales rose 4.4% last quarter, less than it would like to see long-term, it’s raising its dividend to 14 cents a share.

CSCO Dividend Chart

CSCO Dividend data by YCharts

A Reuters report said that would push its yield to around 3.2%.

CSCO Dividend Yield Chart

CSCO Dividend Yield data by YCharts

The payout ratio suggests it can keep raising its dividend.

CSCO Payout Ratio TTM Chart

CSCO Payout Ratio TTM data by YCharts

And it’s sitting on a pile of cash.

CSCO Cash and ST Investments Chart

CSCO Cash and ST Investments data by YCharts

So just as YCharts said before, tech stocks are the new “old economy.”

From the editors of YCharts.YCharts Pro Investor Service includes professional stock charts, stock ratings and portfolio strategies.



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