Nasdaq-100 Stocks with Hidden Dividend Potential

Many investors view the Nasdaq-100 as a growth index that doesn't pay dividends. However, there are a few tech giants within this index that have been quietly increasing their payouts every year.

Cisco Systems (CSCO), Texas Instruments (TXN), and Qualcomm (QCOM) are three such companies that keep raising their dividend payments despite being part of the Nasdaq-100. These companies fund their payouts from free cash flow generated by their networking and chip businesses with deep customer relationships.

Cisco Systems, for instance, has a long history of increasing its quarterly dividend payment. In 2011, it was just $0.06 per share, but today it stands at $0.42 per share. The company's operating cash flow reached $14.177 billion in fiscal 2026 against capital spending of only $1.410 billion.

Texas Instruments recently raised its quarterly dividend to $1.52 per share from $1.42, representing an increase of 7% year-over-year. Qualcomm, meanwhile, has a long history of paying dividends since 2003 and currently yields 1.90%, with a forward annualized rate of $3.68.

The common thread among these companies is their ability to generate free cash flow from their businesses, which they use to fund their dividend payments. They also have low leverage, which allows them to maintain their dividend payout ratio even during uncertain economic conditions.