Week 10: Cisco is a solid stock on sale

Cisco week 10

I picked up 9 shares of Cisco in Week 10

Well look at that … we survived. The market went through some turbulent days over the course of the last week or so, but, well, we’re still here. Cisco, despite a 17% drop in the last month, is still kicking as well. I could’ve picked any number of stocks to buy this past week – if you read my LAST POST you know I’m now the proud owner of positions in 50 different companies – but I picked Cisco for a handful of reasons.

This week’s purchase: Cisco

My position is still pretty small (they all are at this point), but it’s now one of the biggest I have. My 10 shares of Cisco are worth $468.70 and make up 5.65% of my portfolio.

I added nine shares of Cisco (CSCO) this week, my 10th since relaunching my march toward a $1,000,000 portfolio. I paid $431.38 for them.

So, why Cisco … and why so many? Those of you who’ve been following my march for a bit know I don’t usually make big, lump purchases. I usually go for the share-here-share-there approach thanks to Robinhood’s commission-free platform. In this case, though, I couldn’t resist. The main draw was the dip. I bought my first share for $52.13 back on Aug. 7. A month before that, shares were trading above $57. I simply couldn’t resist scooping up a handful of shares with a dip like that. I mean, it’s down more than 17% in the last month.

Of course, we all know it’s not a good idea to just buy any old dip. It obviously depends on the company. Cisco, though, doesn’t go on sale all the time. Another thing you don’t see all the time is a tech company with a P/E ratio of 18 and dividend yield of 2.99%. The P/E ratio is low for tech companies – Microsoft and Mastercard, two of the other IT companies in my portfolio, have ratios of 26 and 42, respectively. The dividend yield, meanwhile, is high comparatively speaking. Microsoft’s, for example, is 1.36% and Mastercard’s is 0.48%. If you need more reasons to like Cisco, the company has a pretty decent balance sheet and the dividend payout ratio is prertty low, too. There’s a lot to like.

The purchase increased my forward annual dividend income by $12.60. I’m currently at $202.66 as of this post, which I guess is a bit of a milestone. Next stop: $300.

This week’s dividends: Artesian Resources and Constellation Brands

While we’re on the subject of dividends, I earned a pair this week: $0.25 from Artesian Resources (ARTNA) and $0.75 from Constellation Brands (STZ). I own a share of each. The dividends brought my August total to $6.87. Not bad compared to the $1.88 in earned in July.

March with me

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