CSCO vs ROP: Dividend Comparison
Dividend data as of
Cisco Systems, Inc. (CSCO) and Roper Technologies Inc (ROP) are both in the Information Technology sector, making them natural rivals for dividend investors. CSCO edges ahead on yield at 1.89% versus ROP's 0.97%. For dividend growth, ROP leads with a 5-year CAGR of 18.2% versus CSCO's 10.1%. ROP holds the edge in dividend safety with a "Safe" rating.
Verdict
Yield Analysis
CSCO yields 0.92% more than ROP. In dollar terms, CSCO pays $1.63/share vs ROP's $3.38/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%.
ROP: Dividend growth is accelerating — the 3-year CAGR of 26.9% exceeds the 5-year rate of 18.2% and the 10-year rate of 15.5%.
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.
ROP: The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in CSCO vs ROP 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 $321.99 per share, $10,000 buys about 31.1 shares of Roper Technologies Inc (ROP). Each share pays $3.38 per year in dividends, so the position starts out generating roughly $105 per year — about $9 a month.
CSCO is the larger income stream from day one: $106 per year more on the same $10,000 invested.
What could $10,000 of CSCO or ROP 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.
Roper Technologies Inc (ROP) has raised its dividend about 18.2% a year over the past five years. If that pace held, the $97 per year that $10,000 generates today at the current 0.97% yield would reach $518 per year by 2036 — a 5.2% yield on the original cost.
On those trailing rates, ROP pays more in 2036: $518 versus $494 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would ROP's dividend growth overtake CSCO's higher yield?
Roper Technologies Inc (ROP) yields less today (0.97% vs 1.89%) but has grown its dividend faster — 18.2% vs 10.1% a year over the past five years. If both trends continued, a $10,000 position in ROP would start out-earning the same position in CSCO around 2036 (roughly 10 years from now), paying about $518 per year at the crossover. Before that point, CSCO pays more each year; after it, the gap compounds in ROP's favor.
Can CSCO and ROP 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).
Roper Technologies Inc (ROP) earns $14.21 per share against $3.38 paid out in dividends — 4.2x coverage (a 23% payout ratio).
ROP's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for CSCO if earnings weaken.
Which fits an early-retirement income portfolio better, CSCO or ROP?
For income you need right now, Cisco Systems, Inc. (CSCO) leads: $100,000 invested today pays about $157 a month at the current 1.89% yield, versus $81 a month from Roper Technologies Inc (ROP) at 0.97%.
With a decade or more before the income is needed, ROP's faster dividend growth (18.2% vs 10.1% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
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 $570/yr in ROP 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.
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