This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dell Dives Into Dividends, Follows Apple & Cisco

ROUND ROCK, Tex. ( TheStreet) -- Dell (DELL - Get Report) is the latest tech heavyweight to reverse its stance on dividends, announcing plans for a quarterly payment beginning in the third quarter of the current fiscal year.

The no. 2 PC maker expects the initial dividend rate to be 32 cents per share per year, or 8 cents per share quarterly. Based on Dell's Monday closing price of $11.86, the dividend yield would be 2.7%.

Dell announced its dividend plans after market close on Tuesday.

"The payment of a quarterly cash dividend to Dell's shareholders adds another element to our disciplined capital allocation strategy," said Brian Gladden, Dell's CFO, in the company's statement.

Investors responded positively to the dividend news. Shares of Dell, which is about to kick off its annual analyst meeting, rose 2.67% to $12.29 in extended trading on Tuesday.

A number of big-name tech companies have shifted their position on dividends, most notably Apple (AAPL - Get Report), which announced plans for a quarterly dividend and $10 billion share repurchase earlier this year. The iPhone maker last paid a dividend in 1995.

Cisco (CSCO - Get Report), another famous dividend non-payer, announced its first-ever cash dividend last year, while Microsoft (MSFT) made its first payment in 2003.

Dell expects that through the dividend and share repurchases, it will increase its target range for distribution of capital to shareholders to between 20% and 35% of free cash flow from a prior range of 10% to 30%.

At the analyst meeting, CEO Michael Dell also plans tell analysts that the company has executed on its commitment to grow profitability and operating income while expanding its enterprise solutions and services.

-- Written by James Rogers in New York.

>To submit a news tip, send an email to:

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
AAPL $123.25 0.00%
CSCO $27.13 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs