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The lumped-network finite-difference time-domain (LN-FDTD) technique is an extension of the conventional FDTD method that enables the incorporation of linear one-port LNs in a single FDTD cell. This paper studies the stability and the numerical dispersion of this technique. To this end, an isotropic medium that is uniformly loaded with LNs in the x-direction is considered as a working model. The stability analysis, based on the von Neumann method, is performed for general Mth-order LNs and closed-form stability conditions are derived for some particular cases. The numerical dispersion relation is obtained for plane-wave propagation in the proposed LN-loaded medium. It is shown that LNs can be interpreted in terms of an effective frequency-dependent permittivity and, as a consequence, the LN-loaded medium can be viewed as a uniaxial medium. The numerical admittance of the LNs is also obtained showing that, as a side-effect of the time discretization, the LN parameters become frequency-dependent, e.g. for the resistor case, the resistance becomes a function of the frequency. [ABSTRACT FROM AUTHOR]