Software focus gives Cisco an AI advantage

Article Excerpt

Networking equipment maker Cisco recently acquired Splunk, which specializes in cybersecurity software. The purchase will improve its hardware products, and let it tap Splunk’s expertise in the rapidly growing field of artificial intelligence (AI) software. CISCO SYSTEMS INC. $56 is a buy. The company (Nasdaq symbol CSCO; High-Growth Dividend Payer Portfolio, Manufacturing sector; Shares outstanding: 4.0 billion; Market cap: $224.0 billion; Dividend yield: 2.9%; Dividend Sustainability Rating: Above Average; www.cisco.com) is a leading maker of products that link and manage computer networks. With the April 2024 payment, Cisco raised your quarterly dividend by 2.6%, to $0.40 a share from $0.39. The new annual rate of $1.60 yields a solid 2.9% In 2015, the company began cutting its reliance on cyclical computer hardware products by expanding its software business. That lets it offer its customers a better combination of products and services. Cisco also earns steady revenue streams from selling its software as an ongoing service. Overall revenue rose 1.1%, from $49.3 billion in 2020 to $49.82 billion in…