Cisco Systems Inc (NASDAQ: CSCO) Stock and dividend analysis
Cisco technologies powering the global Internet
Cisco Systems Inc. (Ticker: NASDAQ – CSCO) is a multinational technology company headquartered in San Jose, California.
Cisco’s technology business has experienced remarkable growth recently. In fiscal year 2025, the company’s revenue reached $56.7 billion, a 5% increase from the $53.8 billion recorded in fiscal year 2024. Notably, Cisco surpassed its AI infrastructure target, doubling revenues in that department to $2 billion. Chuck Robbins and his team appear to have a well-defined strategy and the expertise to navigate the rapidly evolving technology landscape effectively.
In the contemporary business landscape, there is a heightened demand for networking, remote work, the Internet of Things (IoT), and cloud computing. This aligns with the rationale behind Cisco’s investment and holding within its portfolio.
Cisco has been instrumental in shaping the internet since 1984. Its products have propelled Cisco to become a global leader in IT, networking, and cybersecurity solutions. The company develops, manufactures, and sells networking hardware and telecommunications equipment. Its products are widely recognised within the IT industry, offering robust hardware and infrastructure that is commonly found in office environments.
This makes Cisco’s products indispensable for an efficient and dynamic workforce, where reliability is paramount.
Cisco is a quality company that we have valued for some time and continue to do so. The company has consistently received awards for its Investor Relations credentials since 2010.
Cisco Systems Inc (CSCO) 5- year average share price and target buy range
Cisco’s average share price over the past five years between the dates 01/01/2022 to 16/10/2026, ranges between:
Lowest point: the shares were valued at $39.27 on the 12th October 2022.
Highest point: the shares reached £130.00 on the 4th June 2026.
A market fair value of the stock, would suggest a price of £115.00 per share, which would leave a modest 10% – 15% projected headroom.
Intrinsic estimates sits around £75.30 per share.
Wall Street price targets & consensus based on a 12 month average sits between £130.25 to £136.16.
Based on the current market dynamics, a challenging external environment, we would be looking for a level of safety. Therefore, we would be setting a buy price between $75.00 to $80.00 per share based on a long term hold over a 10 – 15 year time horizon.
Cisco (CSCO) Dividend: Build Passive Income and P/E metrics
Over the past five years we have been fortunate to receive the regular growing dividend payments. Shareholder distributions are typically made quarterly being payable in January, April, July, and October.
This equity was added to the portfolio in early March 2020, at the commencement of the pandemic at a cost of $38.72 per share. Yesterday’s (06/08/2026) closing share price was $121.50 US dollars. Should there be any significant market downturn, we intend to increase the position of this stock. Cisco has consistently demonstrated remarkable investment potential through both share price appreciation and its regular stable income.
We consider Cisco to be a foundational stock, as it represents a valuable business that is essential for the modern interconnected world.
During the 2026/27 financial year, we anticipate expanding our holdings, particularly following the Splunk acquisition. The prevailing market consensus (which I concur with) holds that the Splunk merger is an optimal alignment for both businesses, thereby enhancing Cisco’s offerings as a leading cloud networking provider while strengthening its cybersecurity credentials and positioning within the sector.
Cisco’s quarterly dividend was increased by 2% to $0.42 cents for 2025/26. The second quarterly dividend went ex-dividend on 6th July 2026. This takes the projected annualised dividend for 2026/27 to be $1.68 dollars per share.
Cisco (CSCO) 10 year dividend history
For research purposes, we have provided a ten year snapshot of the growing (CSCO) annual dividends per share:
2025 $1.64
2024 $1.60
2023 $1.56
2022 $1.52
2021 $1.48
2020 $1.44
2019 $1.40
2018 $1.32
2017 $1.16
2016 $1.04
2015 $0.84 cents
Current dividend yield and P/E Metrics
Dividend yield: 1.47% (24/07/2026)
P/E: 38.04 (24/07/2026)
Fwd P/E: 24.30 (24/07/2026)
The total dividend income that has been received since holding this position is £771.54. This consistent income stream has been steadily growing, further solidifying our reasons for holding this stock. Unfortunately due to the weakness of the US dollar, exchange rates are working adversely in our favour however this does not change our stance in holding the stock. Conversely when the UK pound weakens we will once again have a favourable exchange rate that will work to our advantage. In the short term a strong dollar means we can purchase more overseas stocks for less UK pounds.
Further income analysis can be found in the file below:
Portfolio performance: Returns from holding 100 shares for 6.5 years
Important Disclaimer:
The content on this website is published solely for educational, research, and informational purposes and reflects personal opinion and portfolio tracking. It does not constitute personal financial, investment, or tax advice, nor is it an offer or solicitation to buy or sell any security.
The value of investments and the income derived from them can fall as well as rise, and you may not recover the full amount originally invested. Past performance and dividend yields are not reliable indicators of future results.
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