This year hasn’t been kind to technology businesses like Cisco Systems (NASDAQ:CSCO). However, there’s a value investing opportunity with CSCO stock as the company’s financial stats are adequate, if not jaw-dropping. Besides, as Cisco undergoes a restructuring, shareholders can collect generous dividends quarter after quarter.

Workforce reductions are common this year, especially among American tech companies. Cisco Systems appears to be joining the layoff club, but that’s not necessarily a sign of trouble.

Instead of panic-selling, consider holding shares of Cisco as the company navigates a tough time for the economy. With a closer look, you might find that Cisco has something to offer market contrarians as well as income-focused investors of all stripes.

What’s Happening with CSCO Stock?

CSCO stock is far from its 52-week high of $64.29, but is this really a problem? It’s a rare treat, really, to invest in a software giant like Cisco at a trailing 12-month price-to-earnings (P/E) ratio of 17.55x.

Besides, not every big tech firm offers a forward annual dividend yield of 3.18%. This begs the question, though, of whether Cisco can afford to continue paying dividends.

Since the company’s financial metrics demonstrate improvement, there’s no reason to believe that Cisco will have to slash its dividends anytime soon. Consider that, during 2022’s third quarter, Cisco’s revenue grew 6% year-over-year to $13.6 billion.

Furthermore, Cisco’s non-GAAP earnings per share totaled 86 cents in Q3 2022, up 5% year over year. These aren’t eye-popping increases, but there’s nothing wrong with holding shares of a “steady Eddie” company.

Cisco’s Restructuring Isn’t a Bad Thing

It’s also worth noting that Cisco’s top- and bottom-line quarterly results slightly outpaced Wall Street’s expectations. So, the company’s investors should be encouraged to see Cisco successfully navigating a challenging economy.

At the same time, some folks might be concerned because Cisco CEO Chuck Robbins hinted at a restructuring of the company. He specifically spoke of “right-sizing certain businesses,” along with reducing Cisco’s headcount in some segments.

CFO Scott Herren indicated that the company’s job cuts could impact up to 5% of Cisco’s workforce. Herren also pointed to likely office-facility closures, saying Cisco has “a ton of small leased offices around the world that we don’t need anymore.”

Closing unnecessary office spaces shouldn’t be off-putting to Cisco’s stakeholders. Moreover, the planned headcount reduction doesn’t seem drastic. In fact, Cisco’s management expects to end the fiscal year with a flat headcount compared to the beginning of the year.

What You Can Do Now

CSCO stock might not get an “A” rating at the moment, but a “B” rating is justified in light of Cisco’s slow but steady financial progress. There’s a solid argument in favor of holding some shares for good value and reliable dividends now.

As for Cisco’s restructuring, it shouldn’t be considered a major issue. Closing some unused office facilities is a sensible move. In addition, Cisco’s workforce reduction is quite typical in 2022 and isn’t drastic. Therefore, investors can feel free to hold a moderately-sized position in Cisco shares now.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.