Tags: US | Cisco | Dividend

Cisco to Start Paying a Dividend Before Next Summer

Tuesday, 14 Sep 2010 02:43 PM

Cisco Systems Inc., the world's largest maker of computer-networking gear, said Tuesday that it plans to start paying a dividend before the end of its current fiscal year, in July.

Like several other big technology companies, Cisco has a large cash balance, and analysts have speculated that it would use it for a dividend.

Cisco didn't say how big the dividend would be, saying it would determine it in the coming months while considering tax policy and broader market conditions.

Cisco shares rose 73 cents, or 3.4 percent, to $21.99 in early afternoon trading Tuesday.

Cisco had $40 billion in cash on July 31. However, $33 billion of that sits at overseas subsidiaries. Like other big exporters, Cisco has been reluctant to bring the money back to the U.S., to be taxed at the 35 percent corporate rate.

Because it needs some of its U.S. cash for other corporate needs, Cisco may have to tap its overseas hoard to pay a dividend.

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Cisco Systems Inc., the world's largest maker of computer-networking gear, said Tuesday that it plans to start paying a dividend before the end of its current fiscal year, in July.Like several other big technology companies, Cisco has a large cash balance, and analysts have...
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