08-25-2021, 06:42 PM
(This post was last modified: 08-25-2021, 06:44 PM by ken-do-nim.)
I was going to start a thread on Cisco, but I found an existing one.
Anyway, I want to add Cisco to my portfolio, but even I must admit it's had a nice run this year (especially in the past week) and now is perhaps too pricey. Furthermore, I just read this article which says:
"Cisco appeals to the dividend growth investor seeking a relatively safe, income producing stock. The dividend has a current yield of 2.54%, a payout ratio of just over 43%, and a 5 year dividend growth rate of 9.21%. Those metrics appeal to those seeking income from a stream of dividend payments that are both safe and growing at a rate that exceeds inflation."
Then a bit later ...
"Cisco provides mission critical products for network performance, stability, and security. The company has demonstrated an ability to garner high profit margins and to generate robust strong free cash flows.
In the most recent quarter, CSCO's core products registered strong growth. This resulted in a surge in the share price, and the stock is now up over 30% year-to-date.
My only real concern regarding an investment in the firm is that its growth path is opaque. If growth materializes, the impetus will be provided by the Applications and Security segments. However, the two segments' combined revenues constituted only 17% of the firm's total in FY 2020. Those segments also recorded a growth rate that was close to a breakeven last quarter.
Consequently, I rate Cisco as a HOLD."
Not the glowing recommendation I was hoping for, but I think it's realistic. Looking at their 5 year chart, I see a nosedive from mid-July 2019 in the high 50s to the mid-40s that August. So I will wait and watch.
Anyway, I want to add Cisco to my portfolio, but even I must admit it's had a nice run this year (especially in the past week) and now is perhaps too pricey. Furthermore, I just read this article which says:
"Cisco appeals to the dividend growth investor seeking a relatively safe, income producing stock. The dividend has a current yield of 2.54%, a payout ratio of just over 43%, and a 5 year dividend growth rate of 9.21%. Those metrics appeal to those seeking income from a stream of dividend payments that are both safe and growing at a rate that exceeds inflation."
Then a bit later ...
"Cisco provides mission critical products for network performance, stability, and security. The company has demonstrated an ability to garner high profit margins and to generate robust strong free cash flows.
In the most recent quarter, CSCO's core products registered strong growth. This resulted in a surge in the share price, and the stock is now up over 30% year-to-date.
My only real concern regarding an investment in the firm is that its growth path is opaque. If growth materializes, the impetus will be provided by the Applications and Security segments. However, the two segments' combined revenues constituted only 17% of the firm's total in FY 2020. Those segments also recorded a growth rate that was close to a breakeven last quarter.
Consequently, I rate Cisco as a HOLD."
Not the glowing recommendation I was hoping for, but I think it's realistic. Looking at their 5 year chart, I see a nosedive from mid-July 2019 in the high 50s to the mid-40s that August. So I will wait and watch.