Ralph Nader Goes Hostile on This Tech Giant
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Former presidential candidate Ralph Nader has found a new calling - activist investor.
Nader is calling on the tech bellwether Cisco Systems (Nasdaq: CSCO) to raise its dividend to help boost its struggling stock, according to reports from the Wall Street Journal.
Nader has long been a disgruntled Cisco shareholder and in a letter sent to Cisco CEO John Chambers on June 13 he blasted the company for failing to build or maintain shareholder value.
"If they can't give shareholders value, then they have to give cash," Nader said in an interview.
Nader wants the company to pay out a special $1 per share dividend and double the annual dividend to $0.50/share.
Cisco has a declining stock price but $43 billion in cash. The company paid its first quarterly cash dividend earlier this year at $0.06 per share, or $0.24 on an annual basis. The dividend yields about 1.6% based on the current stock price.
There appears to be plenty of room for Cisco to raise its dividend. Microsoft (Nasdaq: MSFT) and Intel Corporation (Nasdaq: INTC), large tech companies with similar performing stocks, payout 2.6% and 3.4%, respectively.
Nader is calling on the tech bellwether Cisco Systems (Nasdaq: CSCO) to raise its dividend to help boost its struggling stock, according to reports from the Wall Street Journal.
Nader has long been a disgruntled Cisco shareholder and in a letter sent to Cisco CEO John Chambers on June 13 he blasted the company for failing to build or maintain shareholder value.
"If they can't give shareholders value, then they have to give cash," Nader said in an interview.
Nader wants the company to pay out a special $1 per share dividend and double the annual dividend to $0.50/share.
Cisco has a declining stock price but $43 billion in cash. The company paid its first quarterly cash dividend earlier this year at $0.06 per share, or $0.24 on an annual basis. The dividend yields about 1.6% based on the current stock price.
There appears to be plenty of room for Cisco to raise its dividend. Microsoft (Nasdaq: MSFT) and Intel Corporation (Nasdaq: INTC), large tech companies with similar performing stocks, payout 2.6% and 3.4%, respectively.
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