Have you been aware of the next Cisco Systems Inc (NASDAQ: CSCO) dividend of $ 0.29 per share payable on January 24, 2018? Then there are only 8 days left before the stock begins trading without dividends on January 4, 2018. Investors seeking higher-income generating stocks to add to their portfolio should continue reading, while examining the latest financial data from Cisco Systems to analyze your dividend. characteristics.
When I research a stock of dividends, I always follow the following selection criteria:
- Is your annual return among the top 25% of dividend payers?
- Have you paid dividends each year without drastically reducing payments in the past?
- The amount of dividend per share grown in the past?
- Can you pay the current dividend rate of your earnings?
- Based on future earnings growth, will you be able to continue paying dividends at the current rate?
How is Cisco Systems doing?
Cisco Systems has a payment rate of 58.28%, which means that the dividend is covered by the profits. However, in the future, analysts expect the CSCO payment to fall to 47.88% of their profits, leading to a dividend yield of around 3.30%. However, the EPS should increase to $ 2.07, which means that the lower payment rate does not necessarily imply a lower dividend payment. Reliability is an important factor for dividend actions, particularly for income investors who want a solid payment path and a positive outlook for future payment. The reality is that it is too early to consider Cisco Systems as a dividend investment. He has only been paying dividends consistently for 7 years, however, the standard practice for reliable payers is to look for a minimum history of 10 years. Regarding peers, Cisco Systems has a 3.01% performance, which is on the low side for communications actions.
What this means for you:
Are you a shareholder? While there are some things you may like about Cisco Systems from the perspective of the stock of dividends, the truth is that, in general, it is probably not the best option for a dividend investor. It may be beneficial to explore other income stocks as alternatives to Cisco Systems or even look for high growth stocks to supplement your stable income stocks. I suggest that you continue your research by taking a look at my free interactive list of dividending rockstars, as well as high-growth stocks to potentially add to your properties.
Are you a potential investor? Taking into account all of the above, Cisco Systems is a complicated choice for dividend investors since there are a couple of positive things in this regard and also negative. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. As always, I urge potential investors to try to understand the underlying business and its fundamentals well before deciding on an investment. Take a look at our latest free fund analysis to explore other aspects of Cisco Systems.
To help readers overcome the short-term volatility of the financial market, our goal is to provide you with a focused long-term research analysis driven by fundamental data. Keep in mind that our analysis does not take into account the latest price sensitive company announcements.
The author is an independent collaborator and at the time of publication he had no position in the mentioned actions.
