A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of five technology sector stocks striving to join my Volio folio. This could be my thirty-first pick for Volio!
That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a large-cap communication equipment company named, Cisco Systems Inc. Their trading ticker symbol is CSCO. This is my fourth report on Cisco Systems Inc. Most recently you heard me describe this company on February 12 for this Portfolio.
Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector.
The infrastructure platforms group includes hardware and software products for switching, routing, data center, and wireless applications.
Its applications portfolio contains collaboration, analytics, and Internet of Things products.
The security segment contains Cisco's firewall and software-defined security products.
Services are Cisco's technical support and advanced services offerings. The company’s wide array of hardware is complemented with solutions for software-defined networking, analytics, and intent-based networking.
In collaboration with Cisco's initiative on growing software and services, its revenue model is focused on increasing subscriptions and recurring sales.
It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors.
Cisco Systems, Inc. was founded in 1984 and is headquartered in San Jose, California.
I use three key data points to gauge dividend equities or funds like Cisco Systems Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
CSCO Price
Cisco's price per share closed at $38.40 yesterday. A year ago their price was $55.29. Thus, in the past year, their market price dropped $16.89 or just over 30.5%.
Assuming Cisco's stock trades in the range of $30 to $50 this next year, its recent $38.40 price might rise by $3.60 to reach $42.00 by April 2, 2021, assuming upward price momentum continues.
CSCO Dividends
Cisco's last declared quarterly dividend was $0.36 payable April 22nd. That $0.36 Q dividend projects an annual payout of $1.44 to yield 3.75% at yesterday's $38.40 share price.
CSCO Gains?
Adding the $1.44 annual estimated dividend to my $3.60 estimate of Cisco Systems Inc price upside shows a $5.04 potential gross gain, per share, which will be reduced by any costs to trade those shares.
So when we put a little under $1,000.00 today in Cisco Systems at its recent $38.40 share price, we'd buy 26 shares of CSCO.
A $10 broker fee paid half at purchase and half at sale could cost us $0.38 per share.
Subtract that $0.38 brokerage cost from my estimated $5.04 gross gain per share results in a net gain of $3.66 X 26 shares = $95.16 or a 9.5% net gain on a $998.40 investment.
Therefore, Cisco Systems Inc, whose trading ticker symbol is CSCO shows a possible 9.5% net gain including a 3.75% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Cisco Systems Inc is worth the expenditure.
Comments
Log in or sign up to join the conversation.