Saturday, April 2, 2016

Recent Buy - Cisco Systems, Inc. (CSCO)



March 31, I Bought 50 shares of  Cisco Systems, Inc. at $ 28.40 per share plus commission.


Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. It provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points, and servers; and next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice, and video applications. The company also offers service provider video infrastructure, including set-top boxes, cable/telecommunications access products, and cable modems; and video software and solutions. In addition, it provides collaboration products comprising unified communications products, conferencing products, telepresence systems, and enterprise mobile messaging products; data center products, such as blade, rack, and modular servers, fabric interconnects, software, and server access virtualization solutions; security products, including network and data center security, advanced threat protection, Web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products. Further, the company offers wireless products consisting of wireless access points; network managed services; and standalone, switch-converged, and cloud managed solutions. Additionally, it provides technical support services and advanced services. The company serves businesses of various sizes, public institutions, governments, and communications service providers. Cisco Systems, Inc. sells its products directly, as well as through channel partners, such as systems integrators, service providers, other resellers, and distributors. The company was founded in 1984 and is headquartered in San Jose, California.


CSCO is a Dividend Challengers with an 6 year streak of dividend increases. Dividend growth rates for 1 and 3 years are 10.8 and 31.6. (DividendChampions.xls) After the last dividend increase declaration, Cisco Systems, Inc. now pays dividends of $0.26 per share normally in January, April, June and October.


Details of my purchase:

  

Some ratings for CSCO:

    Yahoo:  Mean Recommendation 2.2, 1y Target Est $28.68
    Reuters: Mean Rating 2.08
    Morningstar:  (***) 

If you are interested, you can read the analysis of Cisco by Ken Faulkenberry here


At today's exchange rate, this purchase 50 shares of CSCO will increase €34.00 ($38.74) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9750.00. With purchase price $28.40 plus commission ($5.00) my starting yield on cost is 3.65%.

Click here to see my portfolio.

Full Disclosure: Long CSCO  

10 comments:

  1. I've been watching Cisco for a while now and thing they can deliver some great dividend growth over the next decade. It's been a while since I've taken a more in depth look at the company so I guess it's about time to do so. That starting yield is pretty nice though.

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  2. Nice buy, I am contributing to the success of the company by using their product :). They are everywhere in the business networking.

    Thanks for sharing :)

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  3. Looks pretty good DividendHawk, a name that is definitely part of the increasingly tech world.

    Tristan

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  4. Hi, nice buy on cisco. As a beginner in DGI and fellow European I have to ask you, why do you buy stocks on US stock exchanges?
    Like I said I'm a begginer and I'm afraid that US dollar is too strong against the euro now to buy stocks in dollars. I was thinking to buy stocks on european stock exchanges (german Xetra), but I have to take also taxes into account. Any advise would be apriciated.

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    1. Hi and thanks! I'm buying stocks in the US stock exchange, since most of the shares, of which I am interested, is available there. I also try to buy the company in the same currency in which it will pay dividends.
      In my view, the euro is too strong against the dollar and I expect it to weaken rather than strengthen in the future. It is true that foreign exchange risk is always there, but it is also in all international companies.
      If you mean the withholding tax, which is paid of possible dividends,it depends where the company's headquarter is located.

      Thanks for stopping by!
      DH

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  5. My latest purchase was CSCO, great minds think alike !

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  6. Nice purchase, Hawk. Cisco is a great company and should do well for your portfolio over the years.

    Thanks for sharing
    R2R

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  7. Cisco is a solid company with a great future ahead. I feel that they will benefit from the continued increase in demand for cloud services.

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  8. Great buy DH. I picked up 100 shares of Cisco this time last year. The stock has been up and down, but I like my odds long-term. glad to have you as a fellow shareholder.

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  9. Nice Post, We are both shareholder and sellers of Cisco systems ;-) we are trying to contribute as much as possible to their earnings by selling their products on our website at https://rabashtech.com

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