Top Dividend Stock #4: Cisco (CSCO)
Dividend Yield: 3.30%
YTD Performance: +2.63%
52-Week Return: +11.37%
Cisco Systems (NASDAQ:CSCO), the information technology and Internet protocol giant, is up about 7% from its recent bottom in March, and its latest cash dividend of 19 cents per share for the current quarter represented an increase of 11.8% from the previous 17 cents-per-share dividend.
CSCO endured some setbacks after posting less-than-stellar results and unimpressive forecasts, but is now making plans to transition its core business in order to move into more profitable endeavors. For example, the company is planning to make a switch from its traditional hardware-based model to one that focuses on the growing areas of cloud computing, mobility, security and the Internet of everything (the term used to describe the phenomenon of the increasing connection between technology and the ordinary items we used in our everyday lives).
The company is in the beginning stages of its transition, which presents investors with the opportunity to take advantage of this long-term growth story in the early going. With a P/E ratio of just 15.2, CSCO trades at a great bargain against its peer group, which carries a P/E ratio of 33.8, and the company is ready to reward patient investors with an annual dividend of 76 cents per share.