Cisco (NASDAQ:CSCO) is about to make its shareholders richer. The company will distribute $0.17 per share of its common stock on April 24 to shareholders of record as of April 8. That represents a 21% boost from the previous distribution, which was $0.14. This was paid in the preceding two quarters, most recently last December.
In the press release announcing the move, the company quoted its CFO, Frank Calderoni, as saying that its "continued execution and strong financial position enable us to provide a higher dividend directly to our shareholders."
After many years of not rewarding those owners, the firm started to pay dividends in early 2011.
The new dividend annualizes to $0.68 per share. That yields 3.3% at Cisco's current stock price of $20.90.
Fool contributor Eric Volkman has no position in Cisco. The Motley Fool recommends Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.