Cisco Systems recently raised its quarterly dividend to $0.42 per share, amid record revenue and a strong fiscal year ahead. However, the stock dropped 12% despite surpassing Q2 earnings estimates, with concerns about gross margin pressure. Cisco is a key player in the AI infrastructure buildout, with significant orders from hyperscalers. The company returned $3 billion to shareholders in Q2 and has a forward yield of 2.2%. Analysts forecast future free cash flow to support dividend hikes. Cisco’s networking business is accelerating, with double-digit growth in product orders and a multiyear refresh opportunity. Cisco expects revenue growth of 8.5% for fiscal 2026.

Read more at Yahoo Finance: Cisco stock resets dividend payout as AI moat widens