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