Cisco Systems Inc. on Friday announced that it will start paying quarterly cash dividends to shareholders, the first such payout for the world's largest computer networking equipment maker.
Cisco said that a quarterly dividend of 6 cents per common share will be paid on April 20 to all shareholders of record on March 31, and future dividends will be subject to approval by its board of directors.
"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," Frank Calderoni, Cisco's chief financial officer, said in a statement.
"This dividend complements our leading position, and is an important part of our commitment to bring value to shareholders," he added.
Many large technology companies traditionally tend to reserve their big cash stockpile for the uses such as acquisitions. But in recent years, some have begun issuing dividends or increasing the payout as their business matured and growth rate slowed.
For instance, Microsoft Corp. started paying dividends in 2003. Hewlett-Packard Co. on Monday said it is planning to increase its regular quarterly dividend by 50 percent to 12 cents a share, the first raise since 1998.
Cisco said that a quarterly dividend of 6 cents per common share will be paid on April 20 to all shareholders of record on March 31, and future dividends will be subject to approval by its board of directors.
"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," Frank Calderoni, Cisco's chief financial officer, said in a statement.
"This dividend complements our leading position, and is an important part of our commitment to bring value to shareholders," he added.
Many large technology companies traditionally tend to reserve their big cash stockpile for the uses such as acquisitions. But in recent years, some have begun issuing dividends or increasing the payout as their business matured and growth rate slowed.
For instance, Microsoft Corp. started paying dividends in 2003. Hewlett-Packard Co. on Monday said it is planning to increase its regular quarterly dividend by 50 percent to 12 cents a share, the first raise since 1998.
