CSCO vs ROP: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | CSCO | ROP |
|---|
| Dividend Yield | 1.89% | 0.97% |
| Annual Dividend | $1.63 | $3.38 |
| 5-Year CAGR | 10.1% | 18.2% |
| Payout Ratio | 63% | 23% |
| Consecutive Years | 0 | 0 |
| Price | $77.17 | $321.99 |
Yield Comparison
Cisco Systems, Inc. (CSCO) currently yields 1.89%, which is modest for the broader market. That's 0.92% more than Roper Technologies Inc (ROP), which yields 0.97%. In dollar terms, CSCO pays $1.63/share annually versus ROP's $3.38/share.
Dividend Growth
Over the past five years, ROP has grown its dividend at a 18.2% CAGR compared to CSCO's 10.1%. 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'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. ROP's dividend safety is rated "Safe." The payout ratio of 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x. ROP's payout ratio of 23% is more conservative than CSCO's 63%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in CSCO generates approximately $189/year in dividend income, compared to $97/year from ROP — a difference of $92/year. At $100,000, that gap widens to $920/year.
Verdict
- Best for income: CSCO
- Best for growth: ROP
- Best for safety: ROP
Frequently Asked Questions
Which has a higher dividend yield, CSCO or ROP?
Cisco Systems, Inc. (CSCO) has a higher dividend yield of 1.89% compared to Roper Technologies Inc (ROP) at 0.97%.
Is CSCO or ROP a better dividend growth stock?
Roper Technologies Inc has the stronger dividend growth with a 5-year CAGR of 18.2%, compared to Cisco Systems, Inc.'s 10.1%.
Which is safer for dividend income, CSCO or ROP?
Cisco Systems, Inc.'s dividend safety is rated "Moderate" while Roper Technologies Inc is rated "Safe." 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 23% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 4.2x.
How much income does $10,000 in CSCO vs ROP generate?
A $10,000 investment in CSCO generates approximately $189/year in dividends, while the same amount in ROP generates about $97/year.
Which has a lower payout ratio, CSCO or ROP?
Roper Technologies Inc has a lower payout ratio of 23% compared to Cisco Systems, Inc.'s 63%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
CSCO vs ROP: which is better for retirement income?
It depends on your priorities. CSCO for current income, ROP for dividend growth, ROP for safety. Many retirement investors hold both for diversification.
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