Cisco has a grasp on its tech markets

Article Excerpt

In the past few years, securely connecting to the Internet has become crucial as more businesses sell goods and transfer sensitive information online. As well, more non-computer devices—like cars and household appliances—are connecting to the “Internet of Things.” It’s likely that more than 64 billion devices will link to the Internet by 2026. As the market leader in computer networking, Cisco Systems should continue to profit from surging Internet traffic. Moreover, the addition of software and cybersecurity services, which it sells as a subscription, helps cut its reliance on new hardware sales for growth. In fact, those steady revenue streams should let Cisco keep rewarding investors with regular dividend hikes and share buybacks. CISCO SYSTEMS INC. $47 is a buy. The company (Nasdaq symbol CSCO; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 4.2 billion; Market cap: $197.4 billion; Price-to-sales ratio: 3.9; Dividend yield 3.2%; TSINetwork Rating: Average; www.cisco.com) was formed in December 1984 by computer scientists Leonard Bosca and Sandra Lerner. They developed…

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