IB Net Payout Yields Model

Cisco Systems Ups Net Payout Yield With First Dividend

Today Cisco Systems (CSCO) announced its first dividend payment on April 20th to shareholders of record as of the close of March 31st. While the $0.06 quarterly or $0.24 annual dividend yields only 1.4% it does add to an already sizeable buyback program that yields over 5%. In total shareholders will get a over  6% returned to them via the combination of buybacks and dividends.

With over $25B in cash and massive annual cash flows, CSCO should be able to easily handle these payouts and as long as the stock remains below $20 the yields will be huge.

CSCO clearly has a lot of issues with their products and margins, but every stock has a value point and this might just be the spot. At least as long as the yield remains this attractive.


  • A quarterly dividend of $0.06 per common share will be paid on April 20, 2011, to all shareholders of record as of the close of business on March 31, 2011. Future dividends will be subject to Board approval.
  • "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," said Frank Calderoni, Executive Vice President & Chief Financial Officer, Cisco. "This dividend complements our leading position, and is an important part of our commitment to bring value to shareholders."

Below is a detailed table of the quarterly buybacks and associated yields. All quarterly buyback numbers in 000's.

StockQ3'10Q4'10Q1'11Q2'11Buyback YieldDividend YieldNet Payout Yield

Disclosure: Long CSCO. Please review disclaimer page. 


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