Cisco to Start Paying Dividend

By Cindy Waxer September 14, 2010

During its annual Financial Analyst Conference 2010 webcast from its San Jose headquarters, Cisco Systems CEO John Chambers said the multinational technology giant plans to initiate a dividend of 1 percent to 2 percent in fiscal year 2011. Cisco shares rose 72 cents, or 3.4 percent, to $21.98 in early afternoon trading Tuesday.

Details were posted on Cisco’s blog:

“At our annual Financial Analyst Conference today, we outlined our intention to issue a dividend during the current fiscal year ending July 30, 2011.   As part of the discussion, we addressed our commitment to further establishing Cisco as a unique investment by providing shareholders with a guaranteed dividend yield to complement Cisco’s long term growth opportunity.  Size and timing of the dividend will be determined in the coming months, taking into consideration tax policy and broader market conditions.” 

The announcement falls on the heels of news that Chambers’ pay doubled in the latest fiscal year. Due largely to increases in his stock and option awards and cash bonus, Chambers received compensation valued at $18.9 million in fiscal 2010, according to documents filed with the U.S. Securities and Exchange Commission. His total package is up 33 percent from 2009, when he received compensation valued at $14.2 million.

Cisco’s revenue came in at $40 billion, up from $36.1 billion in 2009. Net income reached $7.8 billion, up from $6.1 billion in the prior year.

Edited by Erin Harrison

TechZone360 Contributing Editor

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