Many investors use the strategy known as buying dividends, or getting into a stock solely for collecting the quarterly payout and then selling the stock within days. The strategy requires timing to be effective.
In the case of Cisco and JPMorgan, that means you have to own shares prior to July 6 because the companies are scheduled to go "ex-dividend" on July 1.
Cisco's 21-cent quarterly dividend is scheduled to be paid on July 22 to investors of record as July 6, while JPMorgan's 44-cent quarterly payout will come weeks later on July 31. Some of these companies are also chosen for their long-term potential in addition to paying solid yields.
Lets take a look at the merits of both, starting with Cisco.
CSCO data by YCharts
The John Chambers era is coming to an end, but Cisco's growth is poised to accelerate. Sure, Cisco's core routing and switching business has lost some steam. That has been the case for several years. Cisco still holds the largest market share among computer networking vendors and is focusing more on products and services -- particularly the type that are tied to data centers, wireless networks and security.
The San Jose, Calif., company is also involved in the fast-growing market called the Internet-of-Things, which research firm IDC estimates to be a $1.7 trillion market in 2015. Nearly 15 billion devices will be connected this year, predicts IDC.