Why Cisco Systems, Inc. Stock Is STILL a Safe Bet for Investors

CSCO stock won’t make you rich, but it will hold its value



As the internet has matured, so has Cisco Systems Inc. (NASDAQ:CSCO). And along with that maturity, CSCO stock has continued to be a fairly appealing stock to some investors.

The market leader in internet routers and switches has become a stable, albeit no-growth, stock. Sales have remained stable for years, at just short of $50 billion, and about 20% of it hits the net income line.

Management has accepted this fate, and Cisco stock has been a reliable dividend payer since 2011, with its payout starting at 6-cents-per-share and rising to 29-cents-per-share and a yield of 3.2% at its Nov. 27 opening bid of about $36.50-per-share.

CSCO stock may never regain its dot-com boom glory, where it briefly touched $80-per-share and Cisco was the world’s most valuable company, but those were different days. Today, Cisco counts victory in different ways.



Comments