Is Cisco, With a 3.2% Dividend Yield, Now As Reliable As Electricity?
There was another sign this week that tech companies are the new industrials: Cisco Systems (CSCO) raised its dividend.
The networking company started paying a dividend in April 2011. It raised the dividend by two cents to 8 cents per share in April. Now, even though its sales rose 4.4% last quarter, less than it would like to see long-term, it’s raising its dividend to 14 cents a share.
A Reuters report said that would push its yield to around 3.2%.
The payout ratio suggests it can keep raising its dividend.
And it’s sitting on a pile of cash.
So just as YCharts said before, tech stocks are the new “old economy.”