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How to invest in American Stock Company

 

American selection for today and that is the company Cisco Systems the ticket for this one easy C. S. C. O. and if you were following along with the news last week you'll know that Cisco shares dropped about 11 percent on the back of their poor earnings report it was actually the single worst drop that Cisco is seen in about 10 years of trading it was just a generally rather weak earnings reports along with the announcement that their current 

CFO is set to step down so one of the things that they were really trying to blame this weakness on as with what a lot of companies are doing is the corona virus in the cove in 19 really impacting their operations which to me is it's a valid point but at the same time potentially just an excuse for the weakness because Cisco does have areas of their business like in person installations which would be impacted but they still have a variety of ways of making money that don't involve the face to face meetings one of the things that you could argue bed. If it's from a timely corona viruses their webex platform which is kind of a compatible to zoom but in particular I think why this year's dropped if we do kind of take a highlight at the actual earnings reports. Investors were not happy about the weak guidance going forward so Cisco other companies projecting that over the next quarter they're gonna see their revenue numbers down about 9 to 11 percent on a year over year basis and that's something that I did want to touch on it in this segment with Cisco is that if this is a company you want to look into more of a company that piques your interest you have to understand that the 


Cisco today is not the same company as it was over the past number of years and Cisco of course is this massive technology conglomerates involved in networks I tell communications router switches they do a whole variety of things but they're not the hyper growth play that they once were when you get back to the 19 nineties and early 2000 and Cisco is really one of the top technology companies out there they've really evolved and transformed into more of this stable more mature play so to see revenue guidance at least down 9 to 11 percent that's obviously not optimal. But we also shouldn't be expecting a company like this to be posting Amazon growth numbers are 10 center Tesla growth numbers because it's a very different company in a very different phase of its life and that's why I mention this is actually a really good dividend play if you do look past the week quarter and the weak guidance going forward the metrics in my opinion for Cisco as a long term holder actually looking decently attractive for example in comparing to its

Competitors or its peers in the space we are seeing a forward P. or 14 which is below the sector average dividends as well are actually noticeably higher we have a 3.32 percent dividend on Cisco today versus the sector average which is well below 2 let's remind ourselves that Cisco is a very good company based on the way their contracts work the way their business operates at pulling in cash flow which allows them to really good dividends although revenues are dropping we'd expect that to stay consistent and the balance sheet on Cisco is actually very strong 1 as well so they have a nice cash bother sitting on which can help them act as a buffer if things do continue to persist but overall the reason I include Cisco in today's Aticle is I do believe that. More or less a philosophical way of viewing things. If you believe in a company like this for a long term. The drops in a quarter by quarter reports 11 percent drop a drop on weaker guidance those do represent potential buying points at a minimum something to kind of nibble away at and if things do persist we can add more as a stock drops deeper but Cisco is a company that has really got their infrastructure laid there going to be playing a big part in 5 G. which is obviously a very high point of interest for all how the YouTube community and it's just got a history of over the years being able to get through certain things with mergers and acquisitions they've been through it I expect the company to continue prospering to continue adapting to the changing environment going forward of course as I mentioned the top with a different style of management they're not so much a growth company but more of a stable play to me a drop like this does represent a time that we can start to look more adding a position again looking at a pretty attractive P. especially for a technology company and a nice dividend so the stock currently trades for $42 U. S. D. I actually do own shares in Cisco and I did add some more on the announcer this drop in continue to moderate moderate going forward to see if I would like to continue adding as time goes on moving along into our second company for today were bouncing over to the Canadian markets and we actually covered this company in the passive income Aticle that we talked about the top passive income stocks top stocks for passive income in Canada this is the


Company Canadian utilities the ticker is see you.T. O. and this to me would be a very suitable company for someone that wants the reliable dividends this would pique someone's interest of their Canadian dividend investor. You're not going to be getting a whole lot of growth out of this company as what they do as the name implies their utility company they're based out of Calgary Alberta but they do have business that expands to up north kind of unique area of business Mexico they even have operations in Australia and this ranges from gas electricity services pipelines generators you name it's just kind of that boring stuff that goes along in the background that people need they don't really put much thought into it but it's an essential service is really what it is and this company is when you talk about a reliable one. It's hard to find a more reliable stock out there if you take a look at their earnings about 95 percent of the company's adjusted earnings are regulated utilities this is how the company can operate with extreme reliability you'll notice their investment grade ratings so this is by D. B. R. SO Morning Star and S. and P.


How to invest in American Stock Company


Global we see an a stable rating we also see an A. minus stable rating which are some of the top investment grade ratings a company can have and then in terms of the dividend we're looking today at a 5.30 percent dividend and to me as a bit of a rule of thumb when it comes to dividend investing. As the yields are creeping higher and higher I start to get a little more skeptical I usually like to aim for that 2 to 4 percent range and when you see a 5 percent dividend it does make you a little bit cautious but not with the company like heating utilities and if you didn't catch that last Aticle fun fact locating utilities is that this is the longest track record of all Canadian publicly traded companies of paying out an increasing dividend so a 48 year track record of increasing the annual dividend so just think about that for a second 48 years of not only paying them but increasing them and if you take a look at this table here titled Canadian dividend all star list which is basically a list of some of the top paying dividend stocks in Canada at the very tip top of this list you see 2 of my favorites you see Canadian Tilly's and fortis to powerhouse utility companies that are pretty much in a league of their own when you look at the streak 48 months R. 48 years 46 years compared to the rest of the Canadian market which still a lot of impressive dividends but nothing like Canadian utilities it really is in a league of its own and because of that chart that we lucked out with 95 percent of their earnings being regulated this is a company that tends to perform well pretty much in all economic environments which is actually why I think it's a good 1 to look into now with all the uncertainty about what's gonna happen with corona virus or a second wave or with the recession coming there's so much to kind of think about a factor in so many unknowns this company has proven through I mean take a look at all the different periods whether be through the financial crisis whether it be through the oil the commodity shock there so many times at least in this chart dating back to 1980 where you can make the argument that is not a good environment for stocks yet Canadian utilities is able to continuously grow their wealth. Pretty much year after year after year and it's kind of why we included in today's Aticle again as I mentioned last time not a flashy stock but one that works is one that you can rely on for your dividend income and as the stock has dropped its actually down about 22 percent off its highs quietly as a dividend investor especially if I was a little bit older watches Aticle I would just be licking my chops here to get a nice starting yield of 5.3 percent again an amazing history on this company you will note as I touched on you're not seeing the most growth out of this company it's not a high flying growth stock by any means but if you're looking for a dividend stock this is as good as it gets when it comes the Canadian market the stock currently trades for $33 Canadian as images got the 5.3

#How to invest in American Stock Company

#How to invest in American Stock