Nasdaq-100 Index Holds Surprising Dividend Payors

Cisco Systems (NASDAQ:CSCO), Texas Instruments (NASDAQ:TXN) and Qualcomm (NASDAQ:QCOM) are three tech giants in the Nasdaq-100 index that continue to pay out dividends despite being known for their focus on growth. Each of these companies has a long history of increasing its dividend payout, with Cisco's quarterly dividend rising from $0.06 in 2011 to $0.42 today, and Texas Instruments' dividend per share climbing every year since 2017.

Cisco's ability to pay out dividends is made possible by its strong free cash flow generation, which reached $14.177 billion in fiscal 2026 against capital spending of only $1.410 billion. This leaves most of the company's cash free for owners, with a trailing dividend of $1.66 per share sitting well below GAAP diluted EPS of $3.33 and non-GAAP EPS of $4.33.

Qualcomm, on the other hand, has a strong licensing arm that generates significant revenue with high margins, giving it a free cash flow yield of 6.40%. This is far above its dividend yield, making its payout less dependent on any single phone cycle. However, Qualcomm's recent guidance suggests that its share of upcoming iPhone launches will be lower than expected.

While all three companies have a history of increasing their dividend payouts, there are some risks to consider. For Cisco, the main risk is that AI networking demand could slow down, affecting margins and orders. Texas Instruments is vulnerable to semiconductor cycles, which can impact its analog chip sales. Qualcomm's reliance on a small group of large handset customers also poses a risk.