Topic: How To Invest

Dividend Advisor Hotline – Friday, July 12, 2019

Article Excerpt

CISCO SYSTEMS INC., $57.95, Nasdaq symbol CSCO, is a leading maker of hardware and software for linking and managing computer networks. Starting with the April 2019 payment, Cisco raised its quarterly dividend by 6.1%. Investors now receive $0.35 a share instead of $0.33. The new annual rate of $1.40 yields 2.4%. This week, the company agreed to acquire Acacia Communications Inc. (Nasdaq symbol ACIA). That firm makes chips and related equipment that speed up the transmission of data between data centres. Regulators will have to approve the deal given that Acadia supplies chips to several of Cisco’s main competitors such as Chinese telecom equipment maker Huawei. The Trump administration has also restricted sales of U.S. technology to Huawei, but that firm accounts for just 1.5% of Acacia’s revenue. Still, the Asia Pacific region accounts for 67% of Acacia’s revenue and is vulnerable to any escalation in the trade dispute between the U.S. and China. However, Cisco already uses Acacia’s products in its networking equipment,…

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