A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its seventh stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!
Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)
Today we'll review the fifth of five technology sector stock candidates vying to be that seventh selection for the Vista portfolio.
My subject today is a large cap communication equipment company, Cisco Systems Inc. Its trading ticker symbol is CSCO. This is my first report on Cysco Systems Inc for this Vista dog of the week portfolio. Several times previously I reviewed it for the Volio portfolio, and selected it in April.
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. has a strategic alliance with Internet2 to deliver next-generation capabilities and software solutions.
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 (CSCO):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
CSCO Price
Cisco's price per share closed at $40.16 yesterday. A year ago its price was $46.71. Price fell $7.55 or just over 16% last year.
If Cisco's stock trades in the range of $35 to $50 this next year, its recent $40.16 price might rise by $4.84 to reach $45.00 by October 19, 2021.
CSCO Dividends
Cisco's most recently declared Quarterly dividend was $0.36 payable October 21st (Wednesday). Dividends are estimated to total $1.44 per share annually and yield 3.59% at yesterday's $40.16 closing price.
CSCO Gains?
Adding the $1.44 annual anticipated dividend to my $4.84 optimistic estimate of Cisco's price upside shows a $6.28 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little over $1,000.00 today in Cisco Systems Inc at $40.16, and we would buy 25 shares of CSCO stock.
A $10 broker fee paid half at purchase and half at sale would cost us $0.40 per share.
Subtract that $0.40 brokerage cost from my estimated $6.28 gross gain per share results in a net gain of $5.88 X 25 shares = $147.00 for a 14.7% net gain on a $1,004.00 investment.
So it goes that CISCO Systems Inc (CSCO) shows a possible 14.17% net gain including a 3.59% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of CISCO Systems Inc (CSCO). Only time and money invested in this stock will determine its worth.