Even Cisco’s 2% Dividend Can’t Save Them From Investor Hate

Core Viewpoint - Cisco's stock has performed well, increasing by 37% over the past year, yet retail investor sentiment has turned negative, with social sentiment dropping to 35/100 despite solid fundamentals and a 2.09% dividend yield [1][6]. Group 1: Investor Sentiment - Mentions of Cisco on Reddit surged in mid-November, with a notable shift from neutral to negative sentiment, as discussions highlighted concerns about historical losses and potential market bubbles [2]. - A specific post on r/investing warned that Cisco's recovery from the dotcom bubble could indicate a potential bubble, resonating with many users [2]. - The decline in sentiment is attributed to profit-taking after a significant annual gain, with the current sentiment at 35/100 [4][6]. Group 2: Valuation Concerns - Cisco's trailing P/E ratio stands at 30, with only 6% year-over-year earnings growth, resulting in a PEG ratio of 5, indicating the stock may be overvalued relative to its growth [3][5]. - The stock's RSI has remained above 70 since November 13, suggesting overbought conditions, which has contributed to the bearish sentiment [4][5]. - Despite strong operational margins (23.6% operating, 17.9% profit) and an 11% monthly gain, concerns about valuation and timing have led investors to lock in profits rather than increase exposure [6].