Cisco Systems Inc. (NASDAQ: CSCO) has acted like a champ in 2019. Its shares were up about 30% year to date, one of the top stocks in the Dow Jones industrial average. Its shares have recently hit multiyear and decade highs, while the Dow, S&P 500 and Nasdaq 100 have all achieved all-time highs. With a changing business model in recent years, Cisco is finally living up to its status as a stock to own for a decade. The question now is whether Cisco is a stock to own for the next decade.
24/7 Wall St. first named Cisco to a list of 10 stocks to own for the decade way back in November of 2010. With a new decade approaching, it is important to look backward for reflection and to look forward for guidance and planning. Without adjusting for dividends, Cisco was trading at close to $24.25 when we named it a holding for the decade. There is a history about why looking out for a decade doesn’t have to bring immediate action for investors when the market is at all-time highs. With some very (un)lucky timing in late 2010, Cisco shares immediately took it on the chin with a very bad earnings report right after it was featured as a decade-long holding in 2010.
What helped make Cisco a stock to own for the next decade in 2010 was that it was just about to become a dividend paying stock, and a lot of industry and companywide changes seemed to be brewing. It was also a time when much of the public was only just starting to recover from the Great Recession. U.S. unemployment was well over 9% at that time, and U.S. gross domestic product of almost $15 trillion is far shy of the current $21