Recent stock purchase of CSCO

With the markets remaining at or near record levels, it is rather difficult to decide what to do with extra cash. Do you invest now because you think the bull run will continue or do you think that the markets are overvalued and you’ll wait for a correction? An article on The DIV-Net entitled The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued makes the case that the majority of the Dow stocks are under- or fairly valued. Overall, I tend to agree. And, since I’m investing for the long-term (20+ years), short-term market corrections will not pose too much of a problem as I’ll just be able to afford more equities and maybe be able to dollar-cost down my per share average.

So today I bought Cisco Systems Inc (CSCO). Even with the market run-up, it is fairly or undervalued and should represent a long-term investment. I will hold it and continue to add to it as long as it continues to fulfill my initial buy criteria of good earnings per share growth and dividend payout. This will add $70.72 to my annual dividend. My average dividend yield is now 3.06%. Estimated annual dividend is now $1018, above my target level of $1000. I continue to expect the annual dividend amount to increase as more capital is added.

CSCO was bought within my Roth IRA. Total 2013 contributions now total $4,200 out of a maximum of $5,500.

My entire portfolio is here.

Company Symbol Shares Price Yield Expected Annual Dividend
Cisco Systems Inc. CSCO 103 $24.407 2.79% $70.72

Full disclosure: Long CSCO

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