Recent Buy: Cisco

Last week I purchased 35 shares of Cisco Systems Inc. (ticker: CSCO) for $ 39,11 per share. CSCO pays a quarterly dividend of $0,36 so this purchase adds roughly $50 per year before taxes and FX-change.

 The reasons of my purchase are as follows:

• Cisco is quite cheap based on its forward PE-ratio: about 12,5x. In the past 5 years the PE-ratio hovered somewhere between 12 tot 20x so the current price seems relatively cheap.
  
• I don't have a big exposure to tech in my portfolio, only IBM and Intel. 
  
• Cisco's dividend yield is decent at about 3,7% and there is room for growth with a payout ratio less than 50%.
• Dividend growth in the last 5 years has been really solid at 13%. I don't expect this growth to continue (although it would be nice) but a dividend growth of 6-8% coupled with a dividend yield of 3,7% and buybacks will deliver a solid total return.
  
• Its balance sheet is rock-solid. Enough cash ($30 billion) to cover its entire debt-load. And if that's not enough, Cisco's annual free cashflow is enough to cover its debt load as well.
• Total return in recent years has been less than the S&P500. I expect "reversion to the mean" works for Cisco as well.
  
• The DGI community has been buying Cisco as well, so that counts for something :-)
  

Thanks for reading! What do you think of my purchase?