This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

7 Dividend Stocks Hiking Payouts in February

Stocks in this article: CSCOOXYUPSMMMMAFCXAPA

Cisco Systems

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First up is $107.5 billion computer networking giant Cisco Systems (CSCO), the largest-cap stock to announce a dividend hike in the trailing week. Cisco has ridden a bit of a roller coaster in the last year, losing more than a third of its value by August before rebounding again in early 2012. But while share prices have been somewhat volatile, dividend payouts have been consistent since the firm announced its first dividend in 2011.

While the company still sports a modest yield at 1.2%, a 33.33% increase in the firm's payout announced on Tuesday sets a solid precedent for further hikes.

Cisco's toehold on the enterprise networking market is the firm's biggest competitive advantage right now. While there are other companies that sell things like routers and switches, Cisco's huge installed base means that customers who want to avoid compatibility headaches are more likely to stick with Cisco. That's not infinitely sustainable, however, as large-scale systems upgrades are standard, and lower-cost competitors could capture a bigger chunk of the market. Cisco will need to continue to innovate in the industry if it wants to incentivize enterprise IT managers to continue to use its offerings.

While there was considerable potential in Cisco's consumer business, the firm has unceremoniously shifted its focus back to its core competency, shuttering its Flip camera business in the process. Even if the move is good for Cisco's bottom line in the near-term, the company could be leaving long-term money on the table by not staying competitive in the consumer market. A more balanced approach would be welcomed by investors.

Cisco's dividend yield hardly qualifies it as a core income holding, however for investors who want to buy this networking firm anyway, the payout provides some nice added value.

Cisco, one of the top-yielding computer hardware stocks, shows up on a recent list of 3 Tech Turnaround Stocks for 2012. I also featured it recently in " 5 Rocket Stocks to Buy This Week."

2 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,647.01 +32.20 0.19%
S&P 500 1,945.34 +4.06 0.21%
NASDAQ 4,427.4520 +7.9740 0.18%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs