We’re adding Cisco (CSCO) to both the Best Ideas portfolio and Dividend Growth portfolio.
Communications networking giant Cisco recently registered a 9 on the , and the firm’s dividend has always been one of the strongest in our coverage. Shares yield ~3% and boast an incredible 3.4 ratio on the Dividend Cushion. These marks are very similar to one of our other dividend growth favorites, Microsoft (MSFT). Both tech giants benefit from huge cash positions on the balance sheet, a characteristic that we view as vital to a sustainable and growing dividend.
Though Cisco has registered a 9 on the Valuentum Buying Index before (at $15.82 in September 2011 and at $19.06 in August 2012), we’ve been hesitant to add shares to the newsletter portfolios on account that both portfolios are already quite technology heavy. The company’s better-than-expected fiscal first-quarter results, released Wednesday, and its technical breakout, however, are finally enough for us to relax our tech-heavy concerns. We’re adding 100 shares to each portfolio at $26.15 each. The transaction logs for both portfolios will be updated shortly.
