Cisco dividend
Cisco's dividends rose by 0.04 per share each year from FY2022 through FY2026, reaching 1.68 per share in 2029 in the base case. Cisco generated $12.767 billion of free cash flow and paid $6.553 billion in dividends, but real free cash flow after stock pay was $8,937 million, so dividends and buybacks exceeded it.
How much does Cisco pay in dividends?
The dividend path follows Cisco's record but recognizes its cash constraints. Dividends rose by 0.04 per share each year from FY2022 through FY2026. The base case continues that pattern, reaching 1.78 per share in 2029. The bear case freezes the annualized rate at 1.68, while the bull case reaches 1.88 as AI deliveries improve cash conversion.
| Year to Jul 2026 | Year to Jul 2025 | Year to Jul 2024 | Year to Jul 2023 | Year to Jul 2022 | |
|---|---|---|---|---|---|
| Revenue | 63,325 | 56,654 | 53,803 | 56,998 | 51,557 |
| Revenue growth (calculated) | 11.8% | 5.3% | -5.6% | 10.6% | 3.5% |
| EPS, diluted | 3.33 | 2.55 | 2.54 | 3.07 | 2.82 |
| Dividend per share | 1.66 | 1.62 | 1.58 | 1.54 | 1.50 |
Does Cisco's dividend fit its cash flow?
Stock compensation makes the shareholder test stricter. The cash-flow statement adds this noncash expense back, so conventional free cash flow includes it. Subtracting $3,830 million produces “real free cash flow” of $8,937 million. This is an economic allowance for employee ownership, not a second cash payment. Buybacks and this allowance should not both be deducted as though they were identical costs.
Free cash flow is operating cash left after necessary capital spending. Cisco generated $14.177 billion from operations and spent $1.410 billion on property and equipment, leaving $12.767 billion of free cash flow. It paid $6.553 billion in dividends and repurchased $6.106 billion of stock, leaving little cash for growth that requires more inventory or supplier prepayments.
| Year to Jul 2026 | Year to Jul 2025 | Year to Jul 2024 | Year to Jul 2023 | Year to Jul 2022 | |
|---|---|---|---|---|---|
| Real free cash flow (after stock pay) (calculated) | 8,937 | 9,647 | 7,136 | 16,684 | 10,863 |
| Dividends paid | 6,553 | 6,437 | 6,384 | 6,302 | 6,224 |
| Shares bought back | 6,106 | 6,000 | 5,787 | 4,293 | 7,689 |
| Returned to shareholders, share of real free cash flow (calculated) | 141.6% | 128.9% | 170.6% | 63.5% | 128.1% |
What could change Cisco's dividend?
A freeze is credible because dividends and buybacks exceeded real free cash flow of 8,937 million in FY2026. Still, the stable five-year record makes continued modest increases more likely than a cut.
What is Cisco's dividend yield today?
Cisco’s stock price assumes sustained growth, while its cash generation tests whether that growth deserves the price. The company sells networking, security and software, so its valuation depends on whether an established business can turn a new AI opportunity into durable earnings.
| Today (Oct 9, 2026) | |
|---|---|
| Share price | 117.882 |
| Market value (calculated) | 464,760.03 |
| Free cash flow yield (calculated) | 2.7% |
| Dividend yield (calculated) | 1.4% |