Top Dividend Stock #4: Cisco (CSCO)
Cisco Systems (CSCO) has ascended on our list of dividend stocks for March, and it is now the fourth highest-yielding stock in the Dow. Its yield has increased slightly from the previous 3.43% to the current 3.51% thanks to a recent bump in the quarterly payout and a slight drop in the share price from last month.
In fact, CSCO is down about 4% since it announced it would be raising its dividend for the quarter by 12%. The current quarterly payout stands at 19 cents per share, up from the 17 cents per share that was paid to shareholders over the previous four quarters.
Cisco continues to underperform the S&P 500 (CSCO has lost about 1.3% for the year, while the S&P has now gained 1%), but at these levels, the stock looks quite good. With a P/E ratio of just 14.4, CSCO seems to be fairly valued, especially when we consider that the industry average is a whopping 44.4. At current levels, CSCO should be seen as an attractive holding for long-term investors looking to take home an annual dividend of 76 cents per share.