How Cisco Could Become a Dividend Legend
Published Fri, 11 Mar 2011 on The Motley Fool

Cisco Systems (Nasdaq: CSCO) is tapping an all-star cast of investment banks to arrange fresh loans. The networking giant will sell an undisclosed bunch of senior debt notes, then use the proceeds for "general corporate purposes" -- which could mean anything. At the same time, we know that the company plans to start paying dividends. This new debt will get dumped right into that effort, or else used to refill the coffers after the dividend payments take their toll. Either way, it's a pretty direct move to restructure Cisco's balance sheet and keep the dividend flows healthy.... Read more