Why Cisco Is Great for Dividend Investors Even If Its High-Growth Days Are Over
The long wait for a comeback at Cisco Systems (NASDAQ: CSCO) continues. The stock briefly crossed the $50 per share threshold before falling back amid the coronavirus-fueled market sell-off. Though it has bounced back from lows in the mid-$30 per share range, Cisco still trades at just half its 2000 peak levels.
Like other tech titans of decades past, Cisco has ventured into new areas. However, the infrastructure platforms on which it built the company still account for a majority of revenue. Until the company can produce significant earnings increases again, only a specific type of investor should consider this stock.
Cisco is now decades removed from the boom times of the dot-com era. After briefly achieving the world's largest market cap in 2000, this tech stock began an extended decline from which it has yet to fully recover. Moreover, since becoming one of the Dow 30 in 2009, Cisco has become the archetype of a mature stock. In recent years, it has become characterized by low growth and healthy dividend payments.
Source Fool.com