Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 74.40

-1.4%

Jan 14 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Lou S. who wrote (23421)	3/4/1999 11:36:00 PM
From: JRH	Read Replies (1) of 77400

If CSCO is holding so much cash, Why don"t they pay any dividends ? If you look at the fundamentals of Finance, they say that if a company can make a better investment in itself than a "fair rate of return", then they should re-invest the money into the company (i.e. "Plowback") and keep the company growing. If a company's factories are only growing earnings by 8% a year (like Lucent) and a fair rate of return is 10%, then the company should pay out some of those dollars ("Payout"). So that is why Cisco doesn't pay out dividends. At least, that is what my professor (a PhD graduate of Northwestern's Kellogg School) has lead me to believe!! <vbg> Justin

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next