Cisco to pay its first dividend

Cisco plans to pay a dividend to shareholders for the first time in its history.

Cisco plans to pay a dividend to shareholders for the first time in its history.

The rate of the dividend will depend on U.S. taxation of overseas profits. CEO John Chambers told Wall Street analysts Tuesday.

See also: Cisco bolsters Nexus, Catalyst switch lines

Cisco will begin paying the dividend in its current 2011 fiscal year, Chamber said. It will yield 1 per cent to 2 per cent of a shareholder's value in the company, depending on how the U.S. government acts on taxation of overseas profits brought back into the country by American companies.

"We're paying a dividend this year," Chambers told the analysts during Cisco's annual analyst conference in San Jose. "The majority of our shareholders said we should do it."

"It would be a major mistake by this country not to allow repatriation" of profits made overseas, he added. "I think there's a 50:50 chance they'll allow it to happen. It would be an opportunity I'd be surprised our leaders let pass by. We have $US30 billion overseas."

Chambers said the repatriation decision will determine that rate of yield on Cisco's dividend.

"Size and timing of the dividend will be determined in the coming months, taking into consideration tax policy and broader market conditions," Cisco said in a statement.

Tags business issuescorporate issuesrouterciscofinancial resultsfinanceindustry verticalsLAN & WAN

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jim Duffy

Network World

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest News Articles

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?