Cisco: The Premier Dividend Technology Stock For Your Portfolio

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About: Cisco Systems, Inc. (CSCO), Includes: INTC
by: Robert Riesen
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Robert Riesen
Long-term horizon, Deep Value, Growth
Summary

Sales headwinds have had a negative effect on Cisco's stock price, but Cisco's ability to generate free cash flow remains strong, which supports a growing dividend and share repurchases.

I expect 13% upside potential in Cisco's stock based on a conservative discounted free cash flow model.

An EV/FCF ratio of 11.97x is better than any other large-cap technology peer.

Cisco's (CSCO) stock currently trades 25% below its 52-week high as a result of market headwinds and a gloomy Q2 forecast. Despite these concerns, I believe the stock is a bargain and