– Weekly Cash Flow Strategy –
JAN / APR / JUL / SEPT
4th week – CISCO SYSTEMS INC. (CSCO) / $56.69
Forward Dividend & Yield 1.48 (2.67%)
Ex–Dividend Date – July 02, 2021
Dividend Payout – 0.37
This company designs, manufactures, and sells internet protocol based networking and other products related to the communications and information technology industry.
Over the last decades, Cisco has been dominating its core networking market. During its fiscal year 2021, which ended on July 31, revenues increased by 8% year over year to $13.1 Billion.
Cisco's dividend, which currently yields an attractive 2.6%, seems safe. Unsurprisingly, management confirmed its intention to return at least half of the company's Free Cash Flow to shareholders, as it did in fiscal 2020 and 2021, with dividends and share buybacks at 59% and 61% of Free Cash Flow, respectively.
A solid long–term mid–single digit revenue and profitability growth should lead to dividend increases. What's more, Cisco can sustain its dividend during a potentially prolonged recession.
It offers us a safe, attractive, and growing dividend for investors.