Wednesday, April 29, 2015

Cisco Systems, Inc. Is An Undervalued Dividend Payer - Dividend Stock Analysis

I have very little exposure to technology within my portfolio because there's much fewer options when it comes dividend growth investing. One company that I've had my eye on for a couple years now is Cisco Systems, Inc (NASDAQ:CSCO). Cisco Systems designs, manufactures, and sells networking products, which are becoming more and more necessary as the internet continues to grow. Cisco Systems initiated their dividend in FY 2011 and has 4 consecutive years of dividend growth. Cisco Systems closed trading on Friday, April 24th at $28.82 with a current yield of 2.91%. 

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Cisco Systems, Inc.'s investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of Cisco Systems, Inc. have earned okay returns. According to longrundata.com, CSCO has rewarded investors with a total return of 183% or 6.2% annualized over the last 10 years. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow paints a different picture than the historical stock market returns.

You can read the full analysis of Cisco Systems, Inc. on Seeking Alpha.

1 comment:

  1. CSCO has been a tough stock to hold since its bubble peak in 2000, but the recent results look good and they now pay a nice dividend.

    Are you at all worried that ANET has been eating their lunch recently?

    If you are interested in tech/dividends, make sure you check out AAPL / MSFT / INTC (which I'm sure you have!)

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