Cisco Systems (CSCO): A Steady Performer Among the Dogs of the Dow

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

Cisco Systems, Inc. (NASDAQ:CSCO) is widely recognized for its networking, cybersecurity, software, and cloud computing solutions. It produces routers and switches that use the Internet Protocol to move data across networks.

Artificial intelligence has become a major growth area for Cisco Systems, Inc. (NASDAQ:CSCO), with AI-related revenue exceeding $1 billion in 2024. Cisco aims to at least double that figure in 2025. A key factor in this expansion has been its $28 billion acquisition of Splunk, completed last year, which is intended to strengthen customers’ capabilities in networking, security, and AI.

Cisco Systems, Inc. (NASDAQ:CSCO) reported strong earnings in its fiscal Q3 2025. The company’s revenue came in at $14.15 billion, which showed an 11.4% growth from the same period last year. The revenue also beat analysts’ estimates by $91.4 million. Orders for AI infrastructure from webscale clients surpassed $600 million, allowing the company to hit its $1 billion goal a quarter ahead of schedule. This strong performance in AI is driven by the strength of its secure networking solutions, strong global alliances, and the value it consistently delivers to customers.

Cisco Systems, Inc. (NASDAQ:CSCO) generated an operating cash flow of $4.1 billion during the quarter, and it returned $1.6 billion to investors through dividends. In addition, it has raised its payouts for 18 consecutive years. Currently, it offers a quarterly dividend of $0.41 per share and has a dividend yield of 2.39%, as of July 26.

While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Top 10 Safest Dividend Stocks in the UK and Dividend Champions vs Aristocrats: 12 Under-the-Radar Stocks to Buy

Disclosure: None.