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Cisco (CSCO)
#18
This is a great company with great financials. It has a very solid 3.6% yield currently, and I think it will approach 4% with the expected April increase.

The current cash on the balance sheet exceeds all liabilities, so it's likely there will be more IoT related acquisitions in the near future.  I think Jasper is a solid acquisition and I think CSCO payed a fair price.

A couple of downsides/risks:
* The demand for their products has been weak over the last couple of quarters, but this is also true for most other companies.
* Their reliance on acquisitions instead of internal R&D to generate growth.
* A short dividend track record (initiated in 2011).  However, since 2011, growth has been fantastic and management has stated they plan to return a minimum of 50% of FCF to shareholders through dividends and share buybacks.

I think it is undervalued right now.  My conservative fair value is around $29-$30.  I opened a position a couple of weeks ago and plan to add more in the coming weeks.

EDIT: Another small, but nice bonus... The dividend is paid in January, April, July, October. I don't receive many dividends from other companies during these months, so CSCO helps even out the monthly cash flows a little bit.
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Messages In This Thread
Cisco (CSCO) - by Kerim - 11-04-2013, 08:45 PM
RE: Cisco (CSCO) - by hendi_alex - 11-05-2013, 01:17 PM
RE: Cisco (CSCO) - by Kerim - 11-06-2013, 08:15 PM
RE: Cisco (CSCO) - by hendi_alex - 11-06-2013, 10:15 PM
RE: Cisco (CSCO) - by hendi_alex - 11-13-2013, 04:56 PM
RE: Cisco (CSCO) - by Kerim - 11-13-2013, 08:17 PM
RE: Cisco (CSCO) - by hendi_alex - 11-13-2013, 09:25 PM
RE: Cisco (CSCO) - by hendi_alex - 11-14-2013, 10:45 AM
RE: Cisco (CSCO) - by Kerim - 11-16-2013, 10:50 AM
RE: Cisco (CSCO) - by TomK - 12-12-2013, 10:38 AM
RE: Cisco (CSCO) - by hendi_alex - 12-12-2013, 11:06 AM
RE: Cisco (CSCO) - by ronn38 - 12-13-2013, 03:50 PM
RE: Cisco (CSCO) - by Kerim - 02-13-2014, 12:36 PM
RE: Cisco (CSCO) - by EricL - 02-13-2014, 02:44 PM
RE: Cisco (CSCO) - by hendi_alex - 02-13-2014, 03:02 PM
RE: Cisco (CSCO) - by Dividend Watcher - 02-13-2014, 08:40 PM
RE: Cisco (CSCO) - by Dividendsrule - 02-04-2016, 11:21 PM
RE: Cisco (CSCO) - by Caversham - 02-05-2016, 07:34 PM
RE: Cisco (CSCO) - by Dividendsrule - 02-07-2016, 01:36 PM
RE: Cisco (CSCO) - by KenBob - 02-07-2016, 05:11 PM
RE: Cisco (CSCO) - by Dividendsrule - 02-07-2016, 11:30 PM
RE: Cisco (CSCO) - by Caversham - 02-10-2016, 06:38 PM
RE: Cisco (CSCO) - by Kerim - 02-10-2016, 10:32 PM
RE: Cisco (CSCO) - by rayray - 02-11-2016, 06:44 AM
RE: Cisco (CSCO) - by Roadmap2Retire - 02-11-2016, 12:10 PM



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