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Too long has Cisco (CSCO) been a mammoth sized technology company that always seemed to disappoint. Year after year, people would get their expectations up, only to have them come crumbling down after Cisco reported disappointing earnings. The pathetic flop that was the flip phone, then the TelePresence product, and the Cius tablet, the list goes on and on with how many times Cisco's products simply haven't been up to par or behind in the latest technological trend.

After falling to around $15 a share this year, Cisco is showing some life. Its last earnings call beat analysts expectations by 1 cent and didn't let investors down for a change. The companies performance this previous quarter was also impressive. Although there were weak sales in Europe, (which is a given with the European economy struggling mightily right now) US and Asia sales were better than expected.

Cisco recently boosted its dividend 75% to 14 cents a quarter. At current levels the company yields almost 3% annually, making it the eighth highest yielding technology stock in the S&P 500. The company has been repurchasing shares as well, another strategy to boost shareholder value.

The stock is only priced at 12.9x earnings, compared to a sector that averages a PE ratio of 19.4 and contains the likes of Qualcomm (QCOM), Garmin (GRMN), Rockwell Automation (ROK), Juniper (JNPR)and Motorola Solutions (MSI). Looking forward Cisco's projected earnings growth for the next fiscal is 8.29% and its projected revenue growth is 6.14%. If Cisco truly has snapped out of its funk and is beginning to show some value, this may be a stock investors want to look at. However, the stock has shot up over 25% recently and investors should wait and look to buy in after a pullback occurs. At least now it finally pays off to wait and hold shares in Cisco though because you can't complain about a 3% dividend in a high growth technology stock.

Source: Cisco Shows Its Worth