Cisco Boosts Dividend 75% as Q4 Profit & Revenue Beat View (CSCO)

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Networking equipment maker Cisco Systems, Inc. ( CSCO ) late Wednesday posted better-than-expected fiscal fourth quarter earnings results and lifted its quarterly dividend payout by 75%.

The San Jose-based company reported fiscal fourth quarter net income of $1.92 billion, or 36 cents per share, compared with $1.23 billion, or 22 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 47 cents per share.

Revenue rose 4.4% from last year to $11.7 billion.

On average, Wall Street analysts expected a smaller profit of 45 cents per share, on lower revenue of $11.62 billion.

In bigger news, CSCO said its board of directors approved a massive 75% increase to its quarterly dividend. The new dividend of 14 cents per share (up from a prior 8 cents) will be paid on Oct. 24 to with a likely ex-dividend date of Oct. 2.

Cisco shares rose 86 cents, or +5%, in aftermarket trading Wednesday.

The Bottom Line
Shares of Cisco Systems ( CSCO ) will now have a 3.23% dividend yield, based on the higher dividend payout and today's closing stock price of $17.35. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.

Cisco Systems, Inc. ( CSCO ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CSCO

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