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Top 10 Dow Dividend Stocks for February

Procter & Gamble wrestles its way back onto the list

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Top Dividend Stocks #6: Cisco (CSCO)

dividend-stocks-CSCO-stockDividend Yield: 3.43%
YTD Performance: 
52-Week Return: +9.87%

Cisco Systems (CSCO) has moved up several spots on our list of dividend stocks for February, as it now carries a significant yield of 3.43%. After peaking over $26 in mid-2013, CSCO has been trading lower, though it is pretty much flat on a year-to-date basis.

On the bright side, when CSCO reported its fourth-quarter earnings earlier this month, earnings per share came in slightly better than expected — at 42 cents versus the consensus of 41 cents. The company also announced that it would be increasing its quarterly distribution by 12%, from 17 cents per share to 19.

Cisco has underperformed the S&P 500 over the course of the last year, as have many dividend stocks, but CSCO appears to be fairly cheap, with a forward P/E ratio of just 12.4. Management stated that they expect a decline in sales of between 6% and 8% for the current quarter, but for those investors that are willing to wait, CSCO is willing to pay you an annual dividend of 76 cents for your patience.

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