NEW YORK (TheStreet) -- One of the biggest challenges for investors has always come when trying to assess the investment worthiness of stocks that are already trading at higher multiples. Not only does this get complicated when one does not already have a standard for what represents "value," but it gets a bit more problematic when the investor is not yet certain of his/her objectives -- whether growth, income, or for that matter, value.
In these situations, a market-beating portfolio often comes down to finding the right balance of all three. As enamored as I have become with tech stocks, I will conceded that it is rare to find such a balance, particularly when the added bonus of dividend is thrown into the mix.
For that matter, recently the prevailing question has been, is it possible to find a technology stock that trades at a multiple that would be considered "reasonable," pay out enough of its earnings, offer excellent growth opportunities and to top it off, offer yields that would interest dividend-growth investors?
How's That Going to Happen?"The great one," Wayne Gretzky, once summarized his success by suggesting that "a good hockey player plays where the puck is. A great hockey player plays where the puck is going to be." It seems Gretzky understood the very important investment premise of forward-looking and anticipating trends. And this is a quality that Cisco is starting to demonstrate today more than any other company in the stock market. A perfect example of this was when it recently announced its intent to acquire NDS Group, a provider of content streaming and security software that will help expand its next-generation video services. But one of the more interesting components is that NDS also specializes in software that allows TV content to be delivered to a variety of devices. >>Investors Ignoring Cisco . . . but Not for Long
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV