CSCO Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Cisco Systems Inc, the DDM model, as implemented by StockNews, implies a positive return of 17.51% relative to its current price. To help understand and contextualize the model's evaluation of CSCO, investors may wish to consider are:

• In comparison to other stocks in the Technology sector, CSCO provides shareholders with a dividend yield greater than 76.81% such stocks.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Technology sector, the expected return of 17.51%, based on the stock's current share price and target price based on a dividend discount model, is greater than 78.26% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, CSCO has a discount rate lower than 78.26% of them (a lower discount rate is associated with lower risk).

CSCO Dividends vs. Peers