POLAND – 2025/10/24: In this photo illustration, a Cisco logo seen displayed on a smartphone screen. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
Cisco Systems (CSCO) may not grab headlines like the high-flying tech names of today, but its quiet consistency has made it a powerhouse of shareholder returns. While growth has slowed, the company’s cash-generation machine continues to reward investors handsomely.
Over the past decade, CSCO stock has delivered an astonishing $143 Bil back to its shareholders through solid cash in the form of dividends and buybacks. Let’s examine some figures to see how this payout capability compares to the market’s leading capital-return companies.
Interestingly, CSCO stock has provided the 12th most significant amount to shareholders in history.
Why is this important? Because dividends and share repurchases signify direct, tangible returns of capital to shareholders. They also indicate management’s confidence in the company’s financial stability and ability to maintain sustainable cash flows. Additionally, there are other stocks that follow this trend. Here is a list of the top 10 companies ranked by total capital returned to shareholders through dividends and stock buybacks.
The investment strategies of Trefis’ Boston-based wealth management partner produced positive results during the 2008-09 period when the S&P dropped over 40%. Our partner has integrated the Trefis HQ Portfolio within this asset allocation model to deliver enhanced returns with reduced risk relative to the benchmark index; resulting in a smoother experience, as shown in HQ Portfolio performance metrics.
Top 10 Stocks By Total Shareholder Return
For the complete ranking, check out Buybacks & Dividends Ranking
What stands out? The total capital returned to shareholders as a percentage of the current market cap seems inversely related to growth potential for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are rapidly growing in a more predictable manner compared to the others, yet they have returned a significantly smaller proportion of their market cap to shareholders.
That’s the downside to high capital returns. Indeed, they can be appealing, but you must consider: Am I sacrificing growth and sound fundamentals? With this perspective, let’s analyze some data for CSCO. (Refer to Buy or Sell Cisco Systems Stock for further details)
Cisco Systems Fundamentals
- Revenue Growth: 5.3% LTM and 3.4% last 3-year average.
- Cash Generation: Nearly 23.5% free cash flow margin and 22.1% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for CSCO was -5.6%.
- Valuation: Cisco Systems stock sells at a P/E multiple of 28.4
That’s a decent summary, but assessing a stock from an investment standpoint requires a lot more. This is exactly what Trefis High Quality Portfolio offers. It aims to minimize stock-specific risks while allowing for potential upside.
CSCO Historical Risk
Cisco is not exempt from significant drops. It experienced a loss of around 86% during the Dot-Com crash and 60% in the Global Financial Crisis. Even more recent shocks have been severe — down 37% during the inflation surge, 34% amid Covid, and nearly 25% in the correction of 2018. A strong company, indeed, but history demonstrates that in major sell-offs, even reliable stocks like Cisco face considerable losses.
The Trefis High Quality (HQ) Portfolio, consisting of 30 stocks, has a proven track record of consistently outperforming its benchmark, which includes all three indices – the S&P 500, S&P mid-cap, and Russell 2000. Why is this the case? Generally, HQ Portfolio stocks have provided superior returns with lower risk compared to the benchmark index; resulting in a more stable experience, as demonstrated in HQ Portfolio performance metrics.
