With a Yield Approaching 4%, Is Cisco an Undervalued Dividend Stock?

Cisco's (NASDAQ: CSCO) stock has tumbled about 20% over the past 12 months amid concerns about its slowing growth, the U.S.-China trade war, and the novel coronavirus crisis. A dismal second-quarter report in February, which featured the company's slowest revenue growth in two years, exacerbated the pain.

However, that decline also boosted Cisco's forward dividend yield to a multi-year high of 3.6% and reduced its forward P/E ratio to 12. Those numbers, along with Cisco's unbroken streak of annual dividend hikes since it started paying dividends in 2011, suggest it's an undervalued income stock.

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Source Fool.com