Cisco: The Safe Bet In Technology
Chuck Robbins and team continue the successful transition to more of a software reliance than their legacy hardware products.
A successful transition to more of a subscription based model will return the company to growth and provide a more reliable revenue stream.
How about a high quality growing dividend while you wait for the transition to be completed.
@Cisco Systems, Inc. (CSCO) designs, manufactures, and sells internet protocol networking and other communication and information technology related products. Cisco has long been a popular pick amongst Dividend Growth Investors (DGI).
Over the last few years, CEO @ChuckRobbins, has led the charge to transform Cisco’s revenue stream reliance from its legacy hardware products to a more subscription based model. There have been growing pains (or should I say lack of growth) during the process, but this new Cisco business model is starting to take shape after consecutive quarters of revenue growth, a first since Q4 FY 2015 and Q1 FY 2016. The company pays a generous 3.09% dividend while they complete the transformation as well. The change to a subscription based model, combined with a healthy and sustainable dividend has me believing this stock deserves a spot in your DGI portfolio today.