Cisco Systems designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. While Cisco remains a leader in networking they continue to look forward to the future to ensure diversity of it's revenue sources. Cloud based computing and the Internet of Things (IoT) are now a major focus and Cisco has been busy making acquisitions to unlock this previously untapped market.
It's a shame I didn't consider CSCO a month ago when it was much cheaper but I think I made up for it with my Flowers Foods (FLO) purchase. Recently the company announced a 24% dividend increase and a $15 billion buyback. Cisco’s new dividend represents 35% of its free cash flow, so there should be plenty of room for future dividend growth. Assuming 10% dividend growth per year, Cisco’s annual payout will reach $1.52 per share by 2020, a 5.5% yield based on the current stock price.
I purchased 37 shares of Cisco @ $27.58
CSCO Stock Chart
CSCO Basic Statistics
- Ticker Symbol: CSCO
- Sector: Technology
- Yield: 3.8%
- Dividend Streak: 5 years
- Annualized Dividend Growth 3yr: 18%
- Payout Ratio: 42%
- P/E Ratio: 13.8
- Market cap:$140 Billion
- Website: http://www.cisco.com
CSCO Dividend Growth Chart
Nice purchase, Captain. I am intimately familiar with Cisco as I work in the industry and can attest to the strong technical products they put out. I should consider it too -- didn't realize the div yield is that high.
ReplyDeleteA great purchase which will do great for your portfolio.
Best wishes
R2R
The yield actually hit 4.2% when the market bottomed in early Feb, that would have been a nice time to grab some shares then.
DeleteHey Captain. I've held 100 shares of Cisco for a while now. I really like this stock and I think the company is positioned nicely for the future. Cisco has the market share and the cash ability to buy up competitors or new business lines. Glad to have you as a fellow shareholder.
ReplyDeleteThanks for the reply, It'll be interesting to see what MA choices they make going forward. As you say, they are a cash cow of sorts, it's just a matter of making the right choices.
Deletehey captain. That's an interesting company. I am only familiar with them via yelling at IBM to stop crashing our systems and IBM blaming cisco. I might have to do more research
ReplyDeleteThat's business as usual haha. Thanks for stopping by.
DeleteCD,
ReplyDeleteNot too too bad. Very nice dividend growth rate, wow. Can't you just forward that purchase to my portfolio? haha I know, I'm dreaming. Congratulations, great purchase!
-Lanny
For sure, I wish all of my stocks shared that same dividend growth. I could retire much sooner!
DeleteCaptain,
ReplyDeleteCSCO is a great choice of stocks that are currently trading at a small discount. I also missed the train when I failed to get on board a month ago when it was way more deflated than it is now. Sometimes the timing works out good and other times it works out great! Yours just turned out to be good and not great. Regardless, I'm sure you'll have CSCO long and overtime it'll easily make up for it.
-Dividend Reaper
I really wanted another name in the tech sector. My only holding in the sector had been AT&T. I had a couple of other names in mind but I was just simply more comfortable owning CSCO than the others.
DeleteCisco at 3.8% yield is a nice entry point. It has gone a long way from $60 to $5 making everybody bankrupt. I was still in HS at the time when many people in silicon valley got burn by it. Now, it's a solid company with solid earning and dividend payout with room to grow.
ReplyDeleteNice purchase!!
It's crazy to think that CSCO traded under 10 cents/share in the early 90's and went to well over $70 in the tech bubble. Valuations were just crazy inflated back then, I'm glad I didn't get caught up in that situation. How things change.
DeleteThe dividend growth itself is impressive enough. Cisco, it seems, only has good reviews going for it!
ReplyDeleteLike every company they aren't without their troubles but I think the future is bright for CSCO.
DeleteThis one showed up on my radar earlier this month too. Like you said would have been really great to pick it up before the pop from last month's earnings release. Even after the price appreciation, it's probably still a pretty good deal. Balance sheet to die for. Cash cow. Exponentially growing dividend...A LOT to like here.
ReplyDeleteNice purchase.
Ya I don't think I'm buying at an overvalued price here by any means but if it does go down I will be happy to grab some more and average down when possible. Thanks for stopping by!
DeleteNice pick for sure. I don't think that its overvalued either. It's a great bet in the long run.
ReplyDeleteGlad to see other bloggers buying csco. Thanks for the great info Cliff at onedividendatatime.com
ReplyDeleteI think Cisco is still attractive valued. That look that low payout ratio with attractive P/E. Not to mention its moat!
ReplyDeleteGreat job!
BeSmartRich
In my opinion what makes them an interesting dividend stock is their huge cash position ($60 billion). I can sleep well at night knowing that they have the cash to grow and to pay their dividend in the future as well.
ReplyDeleteCongrats captain,
ReplyDeleteGreat buy with cisco as well. Its on my watchlist miss the opportunity to buy at 24 but hope for a pullback in the future.
Dividend pursuit