Cisco (CSCO) is a big name in networking and offers a wide range of networking solutions, from routers and switches to collaboration tools and security software. This one-stop shop approach can be convenient for businesses.
For investors, Cisco has a history of consistently paying and increasing its dividend for over a decade. The company has a solid financial position with low debt and a lot of cash on hand. This financial strength provides stability for the company and the ability to invest in future growth opportunities. It has been expanding its software and subscription offerings, which can provide recurring revenue and potentially higher margins compared to traditional hardware sales, and acquisitions like Splunk (security software) to move into new growth markets that complement its core business.
On the technical side, the stock is near a level that is supported by multiple trendlines. One goes back to more than two decades. More interestingly, the stock has been tracking a fractal for the past 2 years! Let’s review the charts: