Current Report: Cisco Systems

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Cisco Systems Inc, ticker CSCO, a large-cap communication equipment company in the technology business sector, is the second of five technology candidates vying for the first slot in my Viking folio. This is not my first report on Cisco. I have discussed Cisco previously and selected it for at least one of my past portfolios.

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world.

Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls.

It also has collaboration products, like its Webex suite, and observability tools.

It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries.

Overall, Cisco employees 80,000 employees and sells its products globally.

The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors.

Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Three key data points gauge Cisco Systems Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.


CSCO Price

Cisco’s price per share was $41.30 at today’s market close.  Cisco’s share price fell by $13.84 or about 25% in the past year.

If Cisco’s stock trades in the range of $35.00 to $55.00 this next year, its recent $41.30 share price might reach $50.00 by next year. That upside increase of $8.70 is $5.30 below the valuation projected by 23 analysts tracking Cisco for brokerages.


CSCO Dividends

Cisco’s most recently declared quarterly dividend of $0.38 per share makes an annual dividend of $1.52 and casts a yield of 3.68%.


CSCO Returns

Adding the $1.52 Cisco dividend to my one-year price upside estimate of $8.70 shows a $10.22 potential gross gain per share.

At today’s $41.30 closing price, a little under $1000 would buy 24 shares.

A $10 broker fee (if charged) paid half at purchase and half at sale and might cost us $0.42 per share.

Subtract that maybe $0.42 brokerage cost from my estimated $10.22 gross gain per share results in a net gain of $9.80 X 24 shares = $235.20 for a 23.5% net gain including a 3.68% annual yield.

In a year our $1K investment in shares of Cisco Systems Inc could generate $36.80 in cash dividends. Of course, a single share of CSCO stock at today's $41.30 price is about $5 more than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this not the time to buy CSCO shares based on their dividends for the year 2022. The dividend from $1K invested is $4.50 LESS than yesterday’s single share price. Consider yourself alerted. Now is not the time. Wait for Cisco Systems Inc share price to drop to $39.00.

All of the estimates above are speculation based on the past history of Cisco Systems Inc. Only time and money invested in this stock will determine its market value.

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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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