How Cisco Systems (CSCO) Supports Shareholder Returns Through Innovation and Networking Solutions

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 11 Best Telecom Dividend Stocks to Buy for 2025.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading provider of networking, security, software, and cloud solutions, best known for its Internet Protocol-based routers and switches that enable data to move across networks. The stock has surged by nearly 14% since the start of 2025.

Artificial intelligence has become a major growth driver for Cisco Systems, Inc. (NASDAQ:CSCO). In 2024, the company generated over $1 billion in AI-related revenue and is aiming to at least double that figure in 2025. A key part of this expansion was its $28 billion acquisition of Splunk, completed last year, which strengthens Cisco’s ability to support customers in enhancing their networking, security, and AI capabilities.

Cisco Systems, Inc. (NASDAQ:CSCO)’s dividend growth makes it an appealing option for income investors. The company’s dividend growth streak spans 18 years, and the company currently offers a quarterly dividend of $0.41 per share. The stock has a dividend yield of 2.44%, as recorded on September 24.

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.

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Disclosure: None.