Cisco's Dividend Decision: Tax Missive to D.C.

"I think a lot of people would rather have them putting more money into creating a new market," he added.

But John Rutledge, portfolio manager of the Evergreen Technology Fund, suggests it's time investors face reality. "I think investors should recognize the 1990s are over, and they're over for tech," he said.

Rutledge speculated that part of the reason Cisco shareholders defeated the dividend was that its size was not clear. "Nobody wants Cisco to signal they're a mature company and start paying a big dividend," he said.

But Rutledge argued a small "token" dividend makes a lot of sense, because it would bring in more conservative trust accounts that can invest only in dividend-paying stocks, leading to less volatility in Cisco shares.