CSCO vs QCOM: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | CSCO | QCOM |
|---|
| Dividend Yield | 1.89% | 2.51% |
| Annual Dividend | $1.63 | $3.52 |
| 5-Year CAGR | 10.1% | 7.0% |
| Payout Ratio | 63% | 71% |
| Consecutive Years | 0 | 23 |
| Price | $77.17 | $140.78 |
Yield Comparison
Qualcomm Inc/De (QCOM) currently yields 2.51%, which is solid for the broader market. That's 0.62% more than Cisco Systems, Inc. (CSCO), which yields 1.89%. In dollar terms, QCOM pays $3.52/share annually versus CSCO's $1.63/share.
Dividend Growth
Over the past five years, CSCO has grown its dividend at a 10.1% CAGR compared to QCOM's 7.0%. 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's dividend safety is rated "Moderate." 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's dividend safety is rated "Moderate." 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. CSCO's payout ratio of 63% is more conservative than QCOM's 71%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in QCOM generates approximately $251/year in dividend income, compared to $189/year from CSCO — a difference of $62/year. At $100,000, that gap widens to $620/year.
Verdict
- Best for income: QCOM
- Best for growth: CSCO
- Best for safety: CSCO
Frequently Asked Questions
Which has a higher dividend yield, CSCO or QCOM?
Qualcomm Inc/De (QCOM) has a higher dividend yield of 2.51% compared to Cisco Systems, Inc. (CSCO) at 1.89%.
Is CSCO or QCOM a better dividend growth stock?
Cisco Systems, Inc. has the stronger dividend growth with a 5-year CAGR of 10.1%, compared to Qualcomm Inc/De's 7.0%.
Which is safer for dividend income, CSCO or QCOM?
Cisco Systems, Inc.'s dividend safety is rated "Moderate" while Qualcomm Inc/De is rated "Moderate." 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. 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.
How much income does $10,000 in CSCO vs QCOM generate?
A $10,000 investment in CSCO generates approximately $189/year in dividends, while the same amount in QCOM generates about $251/year.
Is CSCO or QCOM a Dividend Aristocrat?
Qualcomm Inc/De is a Dividend Contender with 23 consecutive years of increases. Cisco Systems, Inc. does not currently qualify for aristocrat status.
Which has a lower payout ratio, CSCO or QCOM?
Cisco Systems, Inc. has a lower payout ratio of 63% compared to Qualcomm Inc/De's 71%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CSCO vs QCOM: which is better for retirement income?
It depends on your priorities. QCOM for current income, CSCO for dividend growth, CSCO for safety. Many retirement investors hold both for diversification.
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