CISCO a dividend-paying technology stock of high quality

 

Tech stocks have been on the decline since the beginning of the year, and it doesn’t appear that things will improve anytime soon. If you’re looking for a safe investment in today’s economy, you can choose Cisco (CSCO), a communications equipment firm. It’s a reliable business with a steady stream of revenue. For income investors, the dividend is excellent, making it a desirable company to invest in.

For many individuals, Cisco has been a terrific investment because it has provided strong profits and has a steady future. With very few issues, the company has been able to weather the economic downturns of 2008 and 2009.Cisco stock, like other tech firms, has recently taken a beating. When it comes to earnings, though, sales increased by 6% in the quarter that concluded on January 29.
Cisco has lately chosen to hike its product prices. It is expected to boost profitability, according to management. Cisco made $5.9 billion in revenue from network switches, primarily data-center networking switches. This appears to be a profitable endeavor for the corporation. Last year, revenue for the company’s Internet for the Future sector increased by 42%, including profitable items such as optical networking, 5G, and silicon. However, sales in Cisco’s Hybrid Work division, which includes Webex products, fell by 9% in the quarter.

Cisco expects adjusted earnings per share in the third quarter to range between $0.85 and $0.87 per share. The revenue increase will be between 3% and 5%. Cisco predicts earnings per share to range between $3.41 and $3.46 in 2022, with revenue growth of 5.5 percent to 6.5 percent.

The prognosis is highly positive and outperforms market expectations. The only concern that the corporation may face is a scarcity of semiconductor chips. Cisco has established a reputation as a solid income play during the previous few years. Cisco has evolved significantly during the last ten years. Its strategy is vastly different from that in the 1990s. Dividends are now seen as a beneficial use of excess income rather than a waste of money. The company has demonstrated a willingness to share profits with investors, which has piqued investor interest.

The most recent quarterly dividend paid by the corporation is $0.38, up 3% from the previous figure. This rise in percentage from the prior figure is noteworthy since it demonstrates a commitment to shareholders at a difficult era.

Cisco pays a $1.52 per share dividend, yielding 2.97 percent. This is a favorable indicator because the yield is above normal for the industry. Aside from the dividend, the corporation has been active in share repurchases. Cisco repurchased $6.4 billion in stock in the first quarter, which is wonderful news for investors. Cisco also announced an additional $15 billion in stock repurchase authority, bringing the total authorization to $18 billion.