Investing

This is my second (and last) buy for June 2017

So as I said in my previous post I had the option to add an extra cash deposit in my brokerage account due to receiving my holliday allowance. Since I was looking at a tech stock already it didn’t take my long to make my second purchase of the month.

cisco_logo

  Cisco Systems
P/E 16.03
Yield 3.68%
Payout Ratio 54.31%
Trackrecord Dividend since 2011 (increasing in double digits)
Valuation 8.38% off 52-wk high

For the (very) few of you who haven’t heard from this tech giant: “Cisco Systems, Inc. designs and sells a range of products, provides services and delivers integrated solutions to develop and connect networks around the world.”

I can pretty much garantuee that the only reason you are able to read this post is because of equipment from Cisco. It could be directly via switch/router on your own location or via the internet backbone(s) based on Cisco-technology.

Cisco has started paying dividends since 2011 and has increased them every year with double digits. Coupled with a solid balance sheet, low payout ratio and enough room for future growth via security, cloud and IoT. I am really excited to now own 10 shares of CSCO. I bought them on a small dip @ $31,45. With a quarterly dividend of $0.29 this should bring me (10 x 0,29 x 2)-15% tax = $4,93 in 2017. My forward annual income should ofcourse increase with twice that amount: $9,86.

So have you bought anything in june?

Additonal question for my fellow DGI bloggers, how do you research/calculate the fair value of a stock you are analysing? I’m really having trouble find the right sources of information for a few key statistics.

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12 thoughts on “This is my second (and last) buy for June 2017

  1. Great buy, Cisco is one of my favorite DGI stocks and also one of my biggest positions.

    Regarding your question – how do you research/calculate the fair value of a stock you are analysing – I rely on my broker (Fidelity) which provides great stats and research reports, including fair value and estimates.

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  2. I love CSCO and I´m going to add more and more to this stock in the future. Such a great DGI stock.
    Regarding your question:

    Using the Graham Valuation Formula on say CAH, with a 5 year earnings growth of 9.69% and current EPS of 4.19, and AAA rated Corporate bond yield of 4.06% fair value is 127 USD. Even if earnings growth falls to 6% fair value is 93 USD.

    https://en.wikipedia.org/wiki/Benjamin_Graham_formula

    One can also use 4traders.com or finviz.com.

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  3. Great buy. CSCO seems to be getting very popular in the DGI community lately. Have a special place in my heart for them as they were my first dividend stock I purchased. Been performing pretty well.

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    1. Hi Troy, thanks for the comment! I thought based on your post yesterday “Based on our model’s current projections, this bull market has at least 1-2 years left (and more likely 2-3 years)” that it would still take a while for the correction to happen. Or are you referring just to Cisco’s stock?

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  4. CSCO can provide stable dividend now. It’s moved on from the decreasing share price from $60 to $5. Some people I know lost a bunch of money back in the days.

    This is a great entry point for CSCO. I also like MSFT as they’re bulking up from software making to hardwares.

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  5. I think you made a great purchase. I’m looking to add 5 more stocks to my portfolio and CISCO is on the short list of stocks. I like the price per share and the dividend yield, among other things.

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