Cisco will pay its first dividend during current fiscal year

Cisco Systems Inc. (CSCO) will institute its first dividend during its current fiscal year, Chief Executive John Chambers said Tuesday, with a yield likely between 1% and 2% as the networking giant begins to return its hefty cash holdings to shareholders. Chambers--who has said it was a matter of when, not if, Cisco would begin paying a dividend--made the disclosure Tuesday during a presentation with analysts.

Chambers said the size and timing of the dividend will be determined in the coming months, and will be influenced by such factors as the U.S. government's decision on how to tax dividends going forward. Cisco's fiscal year started Aug. 1. A yield of 1% to 2% would put Cisco's payout in the higher-end of tech giants. Intel Corp.'s (INTC) dividend yields 3.4%, the highest among the major tech companies, while yields on Oracle Corp. (ORCL) and Hewlett-Packard Co. (HPQ) are under 1%.

Source: Wall Street Journal

Related Articles:

• The 2010 Dividend Stock Ideas List
• All Investing Involves Risk
• Income Annuities vs. Dividend Stocks
• Five Dividend Stocks With Different Reasons Not To Buy
• Managing Risk With Dividend Stocks