“Here is an opportunity to buy the market leader for IP networking equipment. The world is moving to IP and Cisco is expanding into ‘market adjacencies’ which should give CSCO a 12+ percentage growth rate.”
Cisco will pay a quarterly dividend of 6 cents per share. The company will make the payment on April 30 to shareholders of record on March 31.
Cisco is up 1.53% today to $17.26. I currently own half of my target position in CSCO and will be adding to shares here if I can get them at $17.00. The stock chart looks horrible, but the fundamentals are fantastic and a company with $40 B in the bank can’t go down forever.
“As the role of the network expands across the IT sector, Cisco’s leadership position in the markets we serve is strong, and the time is right for Cisco to pay our first-ever cash dividend,” Chief Financial Officer Frank Calderoni said.
Cisco first said in September that it would begin paying a dividend, targeting a yield of 1% to 2%. At the time, Chief Executive John Chambers said the dividend would be funded through cash generated from its North American operations.
Standard & Poor’s equity analyst Ari Bensinger said the current amount would result in a 1.4% yield.
“We like that Cisco is increasing its commitment to enhancing shareholder value and putting some of its large $40B cash stockpile and strong free cash flow generation to better use,” Bensinger said in a note.