5 Dividend Stocks to Buy According to Sean Murphy’s Game Creek Capital

3. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 66
Game Creek Capital’s Stake Value: $5,248,000
Dividend Yield as of May 31: 3.33%

Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational technology company. In its fiscal Q3 2022 earnings, the company reported product revenue of $9.4 billion, up from $9.1 billion recorded during the same period last year. However, the company’s service revenue was down 8% in Q3.

In February, Cisco Systems, Inc. (NASDAQ:CSCO) announced a 3% hike in its quarterly dividend to $0.38 per share. The company has been raising dividends consecutively for the past 11 years. Moreover, between 2015 and 2018, it raised its dividend at a CAGR of 14%. As of May 31, the stock’s dividend yield was recorded at 3.33%.

During Q1 2022, Game Creek increased its position in Cisco Systems, Inc. (NASDAQ:CSCO) by 2%, owning a $5.24 million worth of stake. The company represented 2.07% of Sean Murphy’s portfolio. In May, Jefferies set a $52 price target on Cisco Systems, Inc. (NASDAQ:CSCO), with a Buy rating on the shares, expressing concerns about the supply chain issues the company might face in China.

As per Insider Monkey’s Q1 2022 database, 66 hedge funds held a $1.74 billion worth of stake in Cisco Systems, Inc. (NASDAQ:CSCO). In comparison, 57 hedge funds held positions in the company in the previous quarter, with stakes valued at over $3.4 billion. AQR Capital Management was one of the leading shareholders of the California-based company in Q1 2022, owning stakes worth over $331.5 million.

ClearBridge Investments mentioned Cisco Systems, Inc. (NASDAQ:CSCO) in its Q3 2021 investor letter. Here is what the firm has to say:

“We reinvested a portion of the proceeds into existing holding Cisco Systems, Inc. (NASDAQ:CSCO), which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco Systems, Inc. (NASDAQ:CSCO) has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco Systems, Inc. (NASDAQ:CSCO) boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”