Wells Fargo has elevated Cisco Systems (NASDAQ: CSCO) from “Equal Weight” to “Overweight” with a refreshed price target of $75. The move comes on the heels of Cisco’s impressive fiscal Q3 results, where demand from three of the six largest hyperscalers soared triple digits year-over-year. This surge is attributed to Cisco’s pivotal role in building out AI infrastructure and its increasing involvement in sovereign AI projects, signaling a structural shift in its order flow dynamics.
Cisco’s leadership reaffirmed strong visibility into the next fiscal year, citing long-term contracts and committed AI build-outs that are already converting into tangible revenue. With next-gen AI networking products hitting a $1 billion revenue run rate, Cisco is demonstrating that its transformation story is accelerating at the right time.
💰 Dividend Yield: 2.63%
📈 Annual Dividend: $1.61 per share
🧾 Payout Ratio: 70%
🔁 Dividend Growth: 13 consecutive years
Cisco’s dividend remains a strong anchor for income-focused investors, especially as the company balances capital returns with strategic AI investments. With a stable yield above the tech sector average and continued commitment to shareholder returns, Cisco combines growth potential with defensive dividend strength.