Artificial intelligence (Ai) increases income and growth in networking giant Cisco Systems.
McDonald’s will continue to enrich investors with nearly half a century of growing dividends.
The challenges of the health insurance industry have increased the dividend revenue “United”.
10 shares we like better than Cisco Systems ›
Dow Jones Industry Average Includes 30 Blue Chip shares, which investors often consider to be a common economic commissioner. It is clear that all of the 30 components other than two return cash to shareholders – a step that tends to confirm that stability.
However, investors may also want to have the potential for stock growth along with strong dividends. For this purpose, these DOW shares are appropriate to pay increasing benefits without compromising potential returns from stock prices.
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After many years of slow increase in income, growth finally increases Cisco systems (NASDAQ: CSCO); With the acquisition of a networking giant SPLunk, orders for ordering products increased by 20% per year (or 9% if SPLunk). Growth occurs when companies try to integrate AI into security and network management.
Rising orders should also strengthen what was already a strong dividend. Its payment has increased every year since the company began to offer dividends in 2011, for $ 1.64 per year, Cisco’s current dividend yield is 2.4%. This is comparable to S&P 500Average 1.2%yield.
More importantly, Cisco is likely to maintain its dividend growth. During the first nine 2025 He earned $ 9.3 billion of free cash flows, sufficient to cover $ 4.8 billion in dividend costs during that period.
Investors have begun to pay attention to shares in recent months. The shares have increased by almost 50% in the last year and its P/E ratio is 28 is perennial heights. Despite recent growth, the P/E ratio slightly increases the average S&P 500 earnings of 30, which shows that it is likely that it is time to buy a Cisco stock.
Dividend investors can also like very much McDonald’s (NYSE: MCD) stock. True, it may seem that this is not the case, between slow economic and intense competition in the restaurant industry, and some investors may be useful for its 27 P/E ratio. However, since McDonald’s actually profit from a franchise, such challenges can have a relatively little impact on its highest line.
McDonald’s earns most of its income from franchise taxes and restaurants from their large real estate portfolio. While it also states that the percentage of income from these restaurants also means that restaurant sales have less influence on the company than competitors such as competitors Chipotle Mexican Grill;
This stability contributes to the strength of its dividends, which increased every year since its introduction in 1976. – $ 7.08 per share – 2.3% – 2.3%. In addition, the benefit looks sustainable as it is more than $ 6.7 billion of free cash flow in 2024. The cost of dividends was about $ 4.9 billion.
In addition, the shares have increased slightly more than 20%in recent years. By combining this with a dividend return, investors seem to have a surprisingly strong growth of McDonald’s growth and revenue stock.
As for Dow Dividend shares, investors can have a unique purchase option for health insurer UNITEDHEALTH GROUP (NYS: UNH); The company offers health insurance for persons, including Medicare and Medicaid recipients, as well as employers’ plans.
Nevertheless, its stocks decreased by almost 40%, as increasing medical expenses in the first 2025 The quarter led to lower earnings. The tragic shooting of CEO Brian Thompson also tired the shares. In addition to the Department of Justice and The New York Times question some of your business practices. This was a difficult decrease in the price of the shares that the sale destroyed almost the entire five -year profits of the shares.
Although such challenges are usually considering shares, at least for some time, United Unitedhealth should be ready to recover if it properly resolved those suspicions. In addition, the current share price of the company gives investors a huge incentive to take up shares. Its P/E ratio has fallen to 13, and the lowest point from 2013 onwards.
The decrease also increased its dividend yield to 2.8%, close to the heights of all time. It is worth noting that the payment has increased 15 years and now pays shareholders $ 8.84 per share annually.
In addition, despite the increasing expenses, the United Possible Cash Frames in 2024 was published in the United States. Its $ 7.5 billion dividend costs. Thus, United, not only can afford its generosity, which is rising, but investors also have a unique opportunity to buy these stocks at an unusually low price. If it is possible to tolerate its risks, health insurance shares offer huge growth potential.
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Will Healy has no position in any of the above shares. Motley fool is a position and recommends Chipotle Mexican Grill and Cisco systems. The Motley Fool recommends the United Group and recommends the following options: short 2025. June 55 USD Calls Chipotle Mexican Grill. The Motley fool has a disclosure policy.
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