Tuesday, September 14, 2010

Cisco Capitulates and Starts Dividends: No Longer A Growth Company

Cisco announced today that it will start paying a 1% dividend, similar to what MSFT (Microsoft) did a while back.

These big companies have finally realized that they are no longer the growing teenagers, but rather old adults, and n longer capable of growth spurts.

CSCO jumped 3% on the news as investors rejoiced. However, investors should realize that 1% is very little, and what it really means that they pay dividends, particularly i such a challenging economic climate.

CSCO (click for buy/sell alerts) stock has gone nowhere for quite some time and is down about 22% from its highs.

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