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Should Cash-Rich Companies Pay Bigger Dividends?

Excluding financials, US companies have racked up $1.7 trillion in cash leaving some investors hungry for their piece of the pie.

Among them is activist investor Eric Jackson of Ironfire Capital who is agitating for these cash rich companies to either declare a dividend or raise the one they’re already paying.

Here’s what he’s looking at:

- Hewlett Packard : $14 billion cash; $13 billion in operating cash flow; 0.70% forward dividend yield

- Oracle : $18.5. billion cash; $9 billion in operating cash flow; 0.90% forward dividend yield


- IBM : $14 billion cash; $21 billion in operating cash flow; 2% forward dividend yield


- Cisco : $39 billion cash; $9 billion in operating cash flow; No dividend


- Google : $27 billion cash; $10 billion in operating cash flow; No dividend


- Pfizer : $17 billion cash; $7 billion in operating cash flow; 4.9% dividend yield.


- Johnson & Johnson : $18 billion cash; $17 billion in operating cash flow; 3.6% dividend yield.


Jackson tells the desk investors will beat a path to the doors of these companies, if they start paying a sustainable dividend!

Hear more from Eric Jackson. Watch the video now!



* You can find our conversation about 2:40 into this video clip!

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Trader disclosure: On July 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman Owns (AAPL); Finerman's Firm Owns (BAC), (BAC) Leap; Finerman Owns (BAC), (BAC) Preferred; Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM)l Finerman Owns (WFC) Preferred; Finerman's Firm And Finerman Own (BBY); Terranova owns (GOOG), (AMZN), (MON), (APC), (GMCR), (MYL), (MRVL), (BAC), (ADI), (ADBE), (AKAM), (HES), (CVS), (AXP), (EMC), (ABT); Kelly Is Short (GS); Kelly Owns (BP) Puts; Najarian Owns (INTC) Call Spreads

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