Artificial intelligence (AI) is driving revenue and growth in network giant Cisco Systems.
McDonald’s, which has nearly half a century of dividends, will continue to enrich investors.
The health insurance industry challenges have increased UnitedHealth’s dividend yield.
10 better stocks than Cisco Systems›
this Dow Jones Industrial Average Investors often see it as an agent of the overall economy, including 30 blue chip stocks. Among the prominent, all but two of the 30 components return cash to shareholders, a move that tends to affirm this stability.
Still, investors may want stock growth potential as well as strong dividends. To this end, these Dow Jones Industrial stocks are in a good position to provide rising spending without compromising the potential returns of stock price growth.
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After years of slow growth in revenue, growth has finally accelerated Cisco Systems (NASDAQ: CSCO). In the case of Splunk acquisition from the web giant, product orders grew 20% year (9% if Splunk is not included). Growth is coming as companies work hard to integrate AI into security and network management.
Rising orders should also be strengthened that has become a strong dividend. Its spending has been rising every year since the company began offering dividends in 2011. At $1.64 per share per year, Cisco now has a dividend yield of 2.4%. and S&P 500The average yield was 1.2%.
More importantly, Cisco may be able to maintain its dividend growth. In the first nine months of fiscal 2025 (as of April 26), it generated $9.3 billion in free cash flow, enough to cover the $4.8 billion dividend expenses for the period.
Investors have begun to notice the stock in recent months. The stock has grown nearly 50% from last year, with a 28-earnings ratio, at multi-year highs. Despite this recent increase, the ratio is slightly below the S&P 500’s average yield of 30, indicating that there may still be time to buy Cisco stock.
Dividend investors may also find a lot McDonald’s (NYSE: MCD) in stock. Admittedly, this doesn’t seem to be the case in the catering industry’s economy and fierce competition, and some investors may be skeptical at a 27-price ratio. However, since McDonald’s actually profits from the franchise, this challenge may have a relatively small impact on its top line.
McDonald’s earns most of its revenue from franchise fees and restaurant rentals in its extensive real estate portfolio. While it also claims a percentage of revenue driven by these restaurants, it also means that restaurant sales have less impact on the company than competitors Chipotle Mexican Grill.
This stability contributes to its dividend strength, which has risen every year since its introduction in 1976. $7.08 per year, earnings per share of 2.3%. Additionally, spending appears to be sustainable as its $6.7 billion free cash flow covers dividend expenses of approximately $4.9 billion in 2024.
Additionally, the stock is up more than 20% from last year’s stock. When combining it with dividend returns, investors’ growth and revenue inventory at McDonald’s seems surprising.
Investors may have unique buying opportunities in health insurance companies when it comes to Dow Jones dividend stocks UnitedHealth Group (NYSE:UNH). The company provides health insurance to individuals, including Medicare and Medicaid recipients, as well as employer plans.
Nevertheless, its stock fell nearly 40% as rising medical expenses led to revenue guidance in the first quarter of 2025. The stock has also been plagued by the tragic shooting of CEO Brian Thompson. In addition, the Ministry of Justice’s investigation and The New York Times Some of its business practices have been questioned. The decline in stock prices is so severe that sales eliminated the five-year gains of almost all stocks.
While this challenge often weighs stocks, UnitedHealth should be positioned as recovery if these allegations are properly addressed at least for a period of time. In addition, the company’s current share price provides investors with a huge impetus to occupy the stock. Since 2013, its price-to-earnings ratio has dropped to 13, its lowest point.
The decline also raised its dividend yield to 2.8%, close to an all-time high. Therefore, it is worth noting that spending has increased for 15 consecutive years and is now paying shareholders $8.84 per share annually.
Additionally, despite the rising costs, UnitedHealth’s nearly $21 billion in free cash flow allows it to meet the $7.5 billion dividend cost in 2024. So not only can the United States bring generous dividends to its generous dividends, but investors also have a unique opportunity to buy the stock at an unusually low price. If people can tolerate their risks, health insurance stocks offer huge growth potential.
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Will Healy has no position in any of the stocks mentioned. Motley fool has a place and recommends Mexican grills and Cisco systems. Motley Fool recommends UnitedHealth Group and recommends the following options: June 2025 June 2025 Mexican Grill Phone. Motley Fool has a disclosure policy.
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