Cisco Systems (CSCO) on Tuesday promised shareholders that it will issue its first dividend within the next year. The size of the dividend, which Cisco plans to pay by the end of July 2011, will depend on federal tax policies, market conditions and other variables, the computer-networking-gear maker says.

In its blog statement, the company says it's committed "to further establishing Cisco as a unique investment by providing shareholders with a guaranteed dividend yield to complement Cisco's long-term growth opportunity." In other words, it hopes the dividend will make it more attractive to investors.

Cisco is one of several technology companies looking to use cash on hand to boost its stock price and reward its stockholders. Microsoft (MSFT) shares rose yesterday on reports that the company may take on further debt for either increased dividends or a stock buyback.

Cisco last month said its fiscal-fourth quarter earnings surged 79% to $1.9 billion after revenue increased 27% to $10.8 billion. As of July 31, the company had a cash balance of $4.58 billion.

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Cisco's dividends are a cash cow in the waiting.. but what about... Sales Tax Hotel Tax School Tax Liquor Tax Luxury Tax Excise Taxes Property Tax Cigarette Tax Medicare Tax Inventory Tax Car Rental Tax Real Estate Tax Well Permit Tax Fuel Permit Tax Inheritance Tax Road Usage Tax CDL license Tax Dog License Tax State Income Tax Food License Tax Vehicle Sales Tax Gross Receipts Tax Social Security Tax Service Charge Tax Fishing License Tax Federal Income Tax Building Permit Tax IRS Interest Charges Hunting License Tax Marriage License Tax Corporate Income Tax Personal Property Tax Accounts Receivable Tax Recreational Vehicle Tax Workers Compensation Tax Watercraft Registration Tax Telephone Usage Charge Tax Telephone Federal Excise Tax Telephone State and Local Tax IRS Penalties (tax on top of tax) State Unemployment Tax (SUTA) Federal Unemployment Tax (FUTA) Telephone Minimum Usage Surcharge Tax Telephone Federal Universal Service FeeTax Gasoline Tax (currently 44.75 cents per gallon) Utility Taxes Vehicle License Registration Tax Telephone Recurring and Nonrecurring Charges Tax Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. We also were A Common Law Country! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action.

September 14 2010 at 8:48 PM Report abuse +1 rate up rate down Reply