Sep 19, 2015
Recent Buy - CSCO
Buy in USD - Cisco Systems Inc (CSCO)
Trade Price: 25.95
Sector: Technology - Networking & Communication Devices
Payout Ratio: 46%
Dividend Increase Streak Years: 5
DGR 3-yr: 60,2%
P/E trailing 12-month: 14,9
I have some telecoms in my portfolio, but I consider Cisco to be my only pure tech play. I have been searching for new tech names every now and then, but it's a tough sector to invest in. Anyways, I'm pleased to have invested in CSCO. Valuation and yield seems compelling enough. Also this company is known for its strong cash flow. I believe in demand for devices and services in Networking & Communication. But is Cisco able to keep up with the progress in technology? In my opinion that's the biggest risk with tech companies.
Since initiating dividend in 2011, it has been growing at a whopping rate as you can see above. What can be expected in the near future then? I guess most recent increase of 10,5% gives a better idea of that. This purchase adds $0.63 to my October dividends. I hope for another good month in October, but frankly speaking case Baxter spin-off is going to hurt a little bit. This was a small addition to my position in CSCO, and I'm looking for additional purchases sooner or later.
My portfolio has been updated to reflect this trade.
Disclosure: Long CSCO