Cisco Systems: Heads I Win, Tails I Don't Lose Much

Dividend stock analysis network

Investing is simple, but not easy. Ideally you'd invest in what you believe to be best businesses at all times. What makes investing difficult is that the odds being offered in the market, i.e. the valuation, aren't the same across the board.

Cisco Systems (CSCO) was one of the darlings of the late 1990s and early 2000s as the internet infrastructure was being built out.  Unfortunately, investors that ignored valuation in early 2000 still haven't seen the share price surpass those lofty levels even 20 years later.

Data by YCharts

Dividend History

The strategy that most appealed to me when I began investing was the dividend growth strategy.  The idea is to find (1) high quality businesses that (2) have a history of paying and growing their dividend payment that (3) will continue to be bigger and better companies the future.  The reason that appealed to me is because dividends are paid out in cash and represent a return on your capital that doesn't require you to "chop down the tree" in order to enjoy your harvest.

dividend stock analysis, DIY, value investing, long term investing


  1. Dividends are very cool as long as they are paid ...

    1. Albert,

      Most definitely. If the dividends can't continue to be paid and raised then it's pretty much for nothing. That's why the most important part is finding high quality businesses.


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