Cisco, A Dividend Favorite
Cisco (NASDAQ: CSCO) quarterly dividend of $0.17 per common share giving the stock a 3.3% yield. "We are increasing our dividend as part of our strategy to deliver a consistent return to our shareholders, in line with our capital allocation commitment," stated Frank Calderoni, executive vice president and chief financial officer, Cisco. Cisco stock is up +24.91% year-to-date. FY 2013 sales for the current year ending July 30 are expected to be higher by 5.7% to $48.7 billion. Cisco's earnings are forecast to grow 7.6% to $1.99 per share. The annualized dividend yield is expected at 2.7%.
" Investors who focus on just a few emerging markets, particularly the countries known as the "BRICs," that is Brazil, Russia, India and China, are too narrowly focused." states Greg Behar, senior investment strategist at Northern Trust.
The company recently announced that it has agreed to buy cloud services management business SolveDirect. Cisco added 0.5 percent to $20.85. Challenges can arise from the newer technology companies, which have abilities to outpace traditional enterprise models. Big data now has an outstanding opportunity to identify new emerging data for all industry organizations. Forrester's 2013 expectations predict a strong rebound in the worldwide technology market with enterprise organizations.
For investor's Cisco high paying dividend makes its stock attractive. Question's are present on the outcome of QE3. Dividend stocks for Cisco are promising. The dividend stocks outperformed in first quarter. Cisco's average price-sales ratio over the past three years is $26.08 trailing 12-month sales. Average price-earnings multiple since 2008 has been 17.72 times earnings. Cisco has $1.99 of EPS, that average P/E would correspond to a stock price north of $35.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.