Cash-Rich Cisco Is A Buy


  • Cisco generates significant cash flow and has a net cash position on its balance sheet, allowing the company to invest in R&D, conduct M&A, and return cash to shareholders.
  • The company’s dividend yield is the highest since the pandemic bear market and is supported by a conservative payout ratio of ~48%.
  • Cisco is the market leader, and new entrants have a barrier to achieving scale.
  • The stock is undervalued.

Cisco Announces Quarterly Earnings

Justin Sullivan

Stocks are trending up again after a horrible September. But unlike the post-pandemic bull market, high-interest rates will likely favor companies with solid balance sheets. A company like cash-rich Cisco Systems (NASDAQ:CSCO) should do well. Cisco is generating


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Disclosure: I/we have a beneficial long position in the shares of CSCO, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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