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.
Via CSCO PR:
Below is a detailed table of the quarterly buybacks and associated yields. All quarterly buyback numbers in 000's.
|Stock||Q3'10||Q4'10||Q1'11||Q2'11||Buyback Yield||Dividend Yield||Net Payout Yield|
Disclosure: Long CSCO. Please review disclaimer page.