A portfolio of stocks I've been building since September 3 is named Volio. It 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 third of five technology stocks striving to join my Volio folio. This could be my twenty-fourth 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 firm named, Cisco Systems Inc. Their trading ticker symbol is CSCO. This is my third report about Cisco Systems Inc. The two previous reports were aired on April 16 and May 15, 2018, for the DoTW III 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.
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 $49.33 yesterday. A year ago its price was $47.58. Thus, in the past year, its market price increased $1.88, or just over 3.67%.
Assuming Cisco's stock trades in the range of $44 to $56 this next year, its recent $49.55 price could rise by $3.67 to reach $53.00 by February 12, 2021, assuming upward price momentum continues.
CSCO Dividends
Cisco's latest declared quarterly dividend was $0.35 paid January 22. That $0.35 Q dividend equates to an annual payout of $1.40 and yields 2.84% at yesterday's $49.33 share price.
CSCO Gains?
Adding the $1.40 annual estimated dividend to my $3.67 estimate of Cisco Systems Inc price upside shows a $5.07 potential gross gain, per share, which will be reduced by any costs to trade those shares.
Say we put a little under $1,000.00 today in Cisco Systems Inc at its recent $49.33 price, would buy 20 shares of CSCO.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.50 per share.
Subtract that $0.50 brokerage cost from the estimated $5.07 gross estimated gain per share leaves a net gain of $4.57 X 20 shares = $91.40 or a 9.15% net gain on a $986.60 investment.
Therefore, Cisco Systems Inc, whose trading ticker symbol is CSCO shows a possible 9.15% net gain including a 2.84% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if Cisco Systems Inc, is worth your time and money.
Comments
Log in or sign up to join the conversation.