On Wednesday, February 11, 2026, the Board of Directors of Cisco Systems, Inc. (NASDAQ: CSCO) announced a quarterly dividend increase from $0.41 to $0.42 per share. The dividend will be payable on April 22, 2026, to shareholders of record as of April 2, 2026. This represents a 2.44% increase over the prior quarterly dividend.
Current Dividend Yield and Income Impact
At today’s opening price of $77.98, this increase raises CSCO’s forward dividend yield to approximately 2.15%.
As an owner of 195 shares of Cisco Systems, this dividend increase adds $5.91 to my projected annual net dividend income. I was expecting an increase of around 5%, or two cents, so this marks another one-cent increase like in several previous years and therefore came in below my expectations.
Long-Term Dividend Growth Track Record
Cisco Systems is a Dividend Contender with a 15-year streak of dividend increases. According to Dividend Champions data, its dividend growth rates are:
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1-year: 2.5%
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3-year: 2.6%
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5-year: 2.7%
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10-year: 7.1%
This recent dividend increase marks the 10th consecutive raise I’ve received since initiating my position in March 2016. Over that time, the quarterly dividend has grown from $0.26 to $0.42 per share—an increase of approximately 61.5%, reflecting moderate income growth over the period.
At the time of writing, CSCO represents about 1.51% of my portfolio and contributes approximately 0.86% of my projected annual dividend income. Following this increase, my yield on cost stands at 5.72%.
Quick Valuation Take
Cisco appears fairly valued at current levels. The company continues to generate strong cash flows, supported by its dominant position in networking and growing presence in software and services.
Dividend Safety and Outlook
The dividend remains well covered by robust free cash flow and a reasonable payout ratio. While dividend growth has slowed in recent years, Cisco’s strong financial position supports continued, albeit modest, increases going forward.
Final Thoughts
This year’s increase was below my expectations, continuing the trend of minimal annual raises. While Cisco remains a reliable income generator, I would like to see a return to stronger dividend growth. Nevertheless, it continues to play a stable role in my portfolio.
Summary of 2026 Dividend Increases / Cuts
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You can follow the development of my dividends here
Full Disclosure: Long CSCO
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