NEW YORK — Cisco Systems said Tuesday it would pay its first dividend by next July, the end of its fiscal year.
Like several other big technology companies, Cisco has a large cash balance, and analysts have speculated that it would use it for a dividend.
Cisco chief executive John Chambers said the annual dividend yield would be between 1 percent and 2 percent. The exact amount will be determined in the coming months while the company considers developments on the tax front and broader market conditions.
Speaking at a conference for analysts and investors, chief financial officer Frank Calderoni said the yield would be “competitive.” Cisco shares rose 19 cents Tuesday to $21.45.
Technology companies usually prefer to invest their cash in themselves rather than return it to shareholders.
