CSCO vs QCOM: Dividend Comparison
Dividend data as of
Cisco Systems, Inc. (CSCO) and Qualcomm Inc/De (QCOM) are both in the Information Technology sector, making them natural rivals for dividend investors. QCOM edges ahead on yield at 2.51% versus CSCO's 1.89%. For dividend growth, CSCO leads with a 5-year CAGR of 10.1% versus QCOM's 7.0%. Both stocks carry a "Moderate" dividend safety rating. QCOM is a Dividend Contender with 23 years of consecutive increases.
Verdict
Yield Analysis
QCOM yields 0.62% more than CSCO. In dollar terms, CSCO pays $1.63/share vs QCOM's $3.52/share annually.
Dividend Growth
CSCO: Dividend growth is accelerating — the 3-year CAGR of 18.0% exceeds the 5-year rate of 10.1% and the 10-year rate of 8.5%.
QCOM: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 7.0% and the 10-year rate of 6.1%.
Dividend Safety
CSCO: The payout ratio of 63% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
QCOM: The payout ratio of 71% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.4x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in CSCO vs QCOM today?
At $77.17 per share, $10,000 buys about 129.6 shares of Cisco Systems, Inc. (CSCO). Each share pays $1.63 per year in dividends, so the position starts out generating roughly $211 per year — about $18 a month.
At $140.78 per share, $10,000 buys about 71.0 shares of Qualcomm Inc/De (QCOM). Each share pays $3.52 per year in dividends, so the position starts out generating roughly $250 per year — about $21 a month.
QCOM is the larger income stream from day one: $39 per year more on the same $10,000 invested.
What could $10,000 of CSCO or QCOM income look like in 10 years?
Cisco Systems, Inc. (CSCO) has raised its dividend about 10.1% a year over the past five years. If that pace held, the $189 per year that $10,000 generates today at the current 1.89% yield would reach $494 per year by 2036 — a 4.9% yield on the original cost.
Qualcomm Inc/De (QCOM) has raised its dividend about 7.0% a year over the past five years. If that pace held, the $251 per year that $10,000 generates today at the current 2.51% yield would reach $492 per year by 2036 — a 4.9% yield on the original cost.
On those trailing rates, CSCO pays more in 2036: $494 versus $492 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would CSCO's dividend growth overtake QCOM's higher yield?
Cisco Systems, Inc. (CSCO) yields less today (1.89% vs 2.51%) but has grown its dividend faster — 10.1% vs 7.0% a year over the past five years. If both trends continued, a $10,000 position in CSCO would start out-earning the same position in QCOM around 2036 (roughly 10 years from now), paying about $494 per year at the crossover. Before that point, QCOM pays more each year; after it, the gap compounds in CSCO's favor.
Can CSCO and QCOM afford their dividends?
Cisco Systems, Inc. (CSCO) earns $2.59 per share against $1.63 paid out in dividends — 1.6x coverage (a 63% payout ratio).
Qualcomm Inc/De (QCOM) earns $4.96 per share against $3.52 paid out in dividends — 1.4x coverage (a 71% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, CSCO or QCOM?
For income you need right now, Qualcomm Inc/De (QCOM) leads: $100,000 invested today pays about $209 a month at the current 2.51% yield, versus $157 a month from Cisco Systems, Inc. (CSCO) at 1.89%.
With a decade or more before the income is needed, CSCO's faster dividend growth (10.1% vs 7.0% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: QCOM has raised its dividend 23 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $595/yr in CSCO vs $631/yr in QCOM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
Track CSCO and QCOM in your portfolio
See your real income from both — forward projections, yield on cost, and dividend safety signals. Sync your brokerage free for 30 days, or track holdings manually on the free plan.
Frequently Asked Questions
Related Resources
Individual Stock Analysis
Dividend Tools
Track Your Dividends
More Comparisons
This tool is for educational and informational purposes only and does not constitute investment, financial, tax, or legal advice. Consult a licensed professional before making investment decisions.
Past performance does not guarantee future results. All projections are hypothetical estimates based on user-provided inputs and may differ materially from actual outcomes.
By using this tool you agree to our Terms of Service and Privacy Policy.