Why the dividend investor may take a look at NASDAQ:CSCO.

Last update: Oct 3, 2023

CISCO SYSTEMS INC (NASDAQ:CSCO) has caught the attention of dividend investors as a stock worth considering. NASDAQ:CSCO excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Examination for NASDAQ:CSCO

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:CSCO was assigned a score of 7 for dividend:

CSCO's Dividend Yield is rather good when compared to the industry average which is at 12.74. CSCO pays more dividend than 83.33% of the companies in the same industry.
CSCO has been paying a dividend for at least 10 years, so it has a reliable track record.
CSCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
CSCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for NASDAQ:CSCO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CSCO has received a 8 out of 10:

An Altman-Z score of 3.53 indicates that CSCO is not in any danger for bankruptcy at the moment.
CSCO has a Altman-Z score of 3.53. This is amongst the best in the industry. CSCO outperforms 83.33% of its industry peers.
CSCO has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of all of its debts.
CSCO has a better Debt to FCF ratio (0.44) than 83.33% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that CSCO is not too dependend on debt financing.
The current and quick ratio evaluation for CSCO is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NASDAQ:CSCO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:CSCO, the assigned 9 is a significant indicator of profitability:

With an excellent Return On Assets value of 12.38%, CSCO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
CSCO's Return On Equity of 28.44% is amongst the best of the industry. CSCO outperforms 93.33% of its industry peers.
CSCO has a better Return On Invested Capital (18.11%) than 93.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CSCO is significantly above the industry average of 11.45%.
The last Return On Invested Capital (18.11%) for CSCO is above the 3 year average (16.86%), which is a sign of increasing profitability.
The Profit Margin of CSCO (22.13%) is better than 93.33% of its industry peers.
In the last couple of years the Profit Margin of CSCO has grown nicely.
CSCO has a Operating Margin of 27.35%. This is amongst the best in the industry. CSCO outperforms 96.67% of its industry peers.
CSCO has a Gross Margin of 62.73%. This is amongst the best in the industry. CSCO outperforms 88.33% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of CSCO

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.