Xerox Hikes Dividend Payout - Analyst Blog
February 21 2013 - 10:00AM
Zacks
Business process and document
management company Xerox Corp. (XRX) recently
announced a 35% year-over-year hike in its dividend payout to a
quarterly payment of 5.75 cents per share or 23 cents on an
annualized basis. The first quarter 2013 dividend is payable on Apr
30 to shareholders of record as of Mar 28.
Based on the closing price of $7.86 on Feb 20, 2013, the proposed
dividend affirms a yield of 2.9%. A steady dividend payout is a
part of the long-term strategy of Xerox to provide attractive
risk-adjusted returns to its stockholders.
The company also has a share repurchase program in place, under
which it repurchased shares worth $1.05 billion in 2012. Xerox has
consistently returned significant cash to its shareholders through
dividends and share repurchases. In 2013, the company intends to
have similar share repurchase levels as in the previous year.
The recent dividend hike follows the strong quarterly results that
helped the company to beat the Zacks Consensus Estimates. The
company also has a healthy liquidity position. Cash and cash
equivalents aggregated $1.2 billion at year-end 2012, while free
cash flow for the year was $2.1 billion.
Headquartered in Norwalk, CT, Xerox is a leader in the development,
manufacture, marketing, servicing and financing of document
equipment across the world. The company also provides extensive
leading-edge document technology, services, software and genuine
Xerox supplies for graphic communication and office printing
environments of any size.
The company has three segments – Technology, Services and Others.
Xerox is looking forward to expanding its offerings through
inorganic measures and new acquisitions, which in turn, will help
it to add more clients to its portfolio.
However, the company needs to be wary of its competitors, which
include formidable names such as NCR Corp. (NCR)
and Digital China Holdings Ltd. (DCHIF), each
carrying a Zacks Rank #2 (Buy), while Concurrent Computer
Corporation (CCUR) retains a Zacks Rank #1 (Strong Buy).
Xerox currently has a Zacks Rank #3 (Hold).
CONCURRENT NEW (CCUR): Free Stock Analysis Report
(DCHIF): ETF Research Reports
NCR CORP-NEW (NCR): Free Stock Analysis Report
XEROX CORP (XRX): Free Stock Analysis Report
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