Daily Stock Analysis: Cisco Systems Inc.
Cisco Systems Inc with the ticker CSCO is a large-cap communication equipment company operating, as I said, in the technology business sector. This is the second of five technology candidates competing for the forty-fifth slot in the Viital folio. It is my first ever report on Cisco Systems for my Viital portfolio though I have reported and selected it for previous portfolios.
Cisco Systems, Inc. is the world's largest hardware and software supplier within the networking solutions sector. It works in six primary business areas:
The secure, agile network business includes switching, routing, and wireless solutions.
The hybrid work division has products for collaboration and contact center needs.
The end-to-end security group has products spanning a variety of threat prevention necessities.
The internet for the future division has routed optical networks, silicon, and optics.
Optimized application experiences offer solutions such as full stack observability.
Services are Cisco's technical support and advanced services offerings.
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. It also has strategic alliances with other companies.
Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
Three key data points gauge any dividend equity or fund such as 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 $45.02 as of yesterday's market close. One year ago its price was $55.59. Thus, CSCO's share price fell $10.57 or about 19% in the past year.
If Cisco stock trades in the range of $35.00 to $55.00 this next year, its recent $46.02 share price might rise by $4.98 to reach $50.00 by next year. My $4.98 upside estimate is $3.79 under the median of one-year price targets from 24 analysts tracking CSCO for their brokers.
CSCO Dividends
Cisco’s most recently declared quarterly dividend of $0.38 was paid on July 28th, to shareholders on record as of July 5th.
Since April 20, 2011, Cisco has paid quarterly dividends increasing annually. The current forward-looking annual dividend of $1.52 equates to an annual yield of 3.38% as of yesterday's $45.02 share price.
CSCO Returns
Adding the $1.52 Cisco annual dividend to my estimated one-year price upside estimate of $4.98 shows a $6.50 potential gross gain, per share, to be reduced by any costs to trade CSCO shares.
At yesterday's $45.02 closing price, a little over $1000 would buy 22 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us $0.45 per share.
Subtract that maybe $0.45 brokerage cost from my estimated $6.50 gross gain estimate per share results in a net gain of $6.05 X 22 shares = $133.10, for a 13.3% net gain including a 3.38% forward-looking annual dividend yield.
Over the next year, our $1K investment in CSCO shares should generate $33.80 in cash dividends. Of course, a single share of CSCO stock bought at yesterday's $45.02 price is $11.22 more than the dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this is no time to pick up Cisco Systems Inc shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is $11.22 less than yesterday’s single share price. Consider yourself alerted. It's a sign. Now’s not the time to buy Cisco. Wait for the price to drop to $39.00 or the Q dividend to rise to $0.51.
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 ...
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