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These 2 Tech Giants Just Declared Dividend Raises
CSCOCisco Systems(CSCO) The Motley Fool·2025-02-20 10:45

Core Viewpoint - The article discusses recent dividend increases from Meta Platforms and Cisco Systems during the first earnings season of 2025, highlighting their financial performance and potential investment opportunities in the tech sector. Group 1: Meta Platforms - Meta Platforms increased its quarterly dividend by 5% to just under 0.53pershare,markingitsfirstdividendraisesinceinitiatingpayoutsinearly2024[2][6]−Thecompanyreporteda210.53 per share, marking its first dividend raise since initiating payouts in early 2024 [2][6] - The company reported a 21% year-over-year revenue growth to over 48 billion and a 49% increase in net income to nearly 21billion,surpassinganalystestimates[4]−Despitearevenueguidanceforthecurrentquarterthatfallsshortofanalystexpectations,thecompanyisexpectedtocontinueoutperformingprojections,withanticipatedannualrevenuegrowthoflessthan1521 billion, surpassing analyst estimates [4] - Despite a revenue guidance for the current quarter that falls short of analyst expectations, the company is expected to continue outperforming projections, with anticipated annual revenue growth of less than 15% [5] Group 2: Cisco Systems - Cisco Systems raised its quarterly dividend by nearly 3% to 0.41 per share, maintaining a consistent history of annual increases since 2011, with the payout rising nearly sevenfold from 0.06pershare[8][10]−Thecompanyreporteda90.06 per share [8][10] - The company reported a 9% year-over-year revenue increase to 14 billion, largely attributed to the acquisition of Splunk, although "legacy" Cisco experienced a 1% revenue decline [9] - Cisco is well-positioned to capitalize on the growing demand for AI functionalities, with a strong track record of high-margin net profits and free cash flow [9][10]