Cisco (CSCO) routers and switches made the transfer of all the data and information flow go to all the right places, and quickly. The company has been at it the business for nearly 30 years — part of how they’ve grown to servicing more than 100,00 customers and hold the top spot for revenues in routing, switching and wireless LAN markets.
Still, CSCO is transitioning toward a mobile world, and has set its focus on offering full solutions — networks, integrated products, services and software — to build on its huge install base. Cisco also is going outside for technology as needed: its recent acquisition of Sourcefire (FIRE) brings it further expertise in network security.
In the meantime, CSCO has managed to increase revenues in every year since 2009, rising from $36 billion to $46 billion over that period, with net income — admittedly, after a dip in 2011 — rising from $6.49 billion that year to $8 billion in 2012.
Meanwhile, cash and cash flow have powered a nice (albeit short) dividend history. We’re looking at $48 billion on the balance sheet as of the most recent quarter, and net operating cash flow of just more than $3 billion. CSCO has nearly tripled its dividend since its first 6-cent payout in 2011, shelling out 17 cents quarterly for a yield of just more than 2.6% on current prices.
CSCO has the time and expertise (not to mention Uncle Scrooge’s vault) to pay you very nicely for a long time.