Recent buy – Cicso Systems (CSCO)

Bought 15 shares of Cisco Systems (CSCO) for 42,14$/share. Total cost – 541 EUR (642$) Annual post-tax dividend inome – 12,7 EUR. Yield on cost – 2,4%

Its been a while now since my last purchase as the market is back to its record highs, but there it was a buying opportunity. Cisco share has took a hit and decreased from 48$ to nearly 42$ today (-12,5%). Yes company lowered its future expectations, but I love Cisco metrix – 2019/2020 Annual sales was 49,3 bn$ and EBITDA 16,4 bn$ both down compared YoY. Net Income 11,2 bn$ or 2,64$ EPS. With purchase price of 42,14$ P/E – 16x, which show that stock is normal valued. Altough dividend yield – 2,4% is not the highest of them all but payout ratio – 55% it looks quite safe. Last dividend increase was done from 0,35$ to 0,36$ so only +3%. Low growth, however company had impressive share buyback lately leading to EPS growth even with total Net Income decline.

What I love the most is their extra strong balance sheet with cash 29 bn$ and financial debts only 15 bn$ company is strongly Cash positive (!) of nearly one year of EBITDA. Equity stands around 40%.

This purchase increased forward estimated dividend income to 816 EUR. After all the cuts, this is a small increase back to 1 kEUR mark. This purchase is dedicated to diversification as after divestment of INTC I had zero tech companies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Powered by WordPress.com.

Up ↑

Engineer my Freedom

Financial freedom from Dividend Growth Investing

Išmok investuoti lėtai ir protingai

Our journey to financial independence

Polliesdividend

Dutch Dividend Engineer

European Dividend Growth Investor

Compounding into freedom - A European perspective

Dividend Compounder

Accumulating Wealth, Slowly But Surely

Broke Investor

My Journey to Financial Independence

www.honestfire.lt/

ATVIRIAUSIAS BLOGAS APIE FINANSINĘ LAISVĘ

One Million Journey

Shaping the Future through Saving & Investing

Total Balance

Ignite your FIRE

Young Dividend

Our journey to financial independence

Generalist Lab

Our journey to financial independence

Passive Canadian Income

Our Journey To Financial Freedom

My Dividend Dynasty

Achieving Financial Independence - Saving, Investing, and Building a Dividend Empire

Dividends Diversify

Our journey to financial independence

The Dividend Guy Blog

Our journey to financial independence

Traveling Lithuania

Traveling Lithuania

Financially free in 10 years

Saving, investing and working towards financial freedom

George's Dividend Meter

Just another WordPress.com site

Dividend Portfolio

A Portfolio For The Small Investor

Engineer my Freedom

Financial freedom from Dividend Growth Investing

Išmok investuoti lėtai ir protingai

Our journey to financial independence

Polliesdividend

Dutch Dividend Engineer

European Dividend Growth Investor

Compounding into freedom - A European perspective

Dividend Compounder

Accumulating Wealth, Slowly But Surely

Broke Investor

My Journey to Financial Independence

www.honestfire.lt/

ATVIRIAUSIAS BLOGAS APIE FINANSINĘ LAISVĘ

One Million Journey

Shaping the Future through Saving & Investing

Total Balance

Ignite your FIRE

Young Dividend

Our journey to financial independence

%d bloggers like this: