Pitney Bowes Inc. (NYSE:PBI) to Issue Dividend Increase - $0.10 Per Share

Key Points

• Pitney Bowes will raise its quarterly dividend to $0.10 per share, a 900% increase from $0.01. The annualized dividend is $0.40 per share, with a 2.3% yield; shareholders of record on November 16 will be paid December 8.
• The dividend appears financially supported, with a current payout ratio of 31% and an expected future payout ratio of 21.5% based on projected earnings of $1.86 per share.
• Pitney Bowes reported quarterly EPS of $0.42, beating analysts’ $0.36 estimate, while revenue of $456.18 million fell slightly short of expectations and declined 0.8% year over year.

Pitney Bowes Inc. (NYSE:PBI - Get Free Report) announced a quarterly dividend on Wednesday, October 28th. Investors of record on Monday, November 16th will be paid a dividend of $0.10 per share by the technology company on Tuesday, December 8th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Monday, November 16th. This is a 900.0% increase from Pitney Bowes's previous quarterly dividend of $0.01.

Pitney Bowes has increased its dividend by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 1 consecutive years. Pitney Bowes has a payout ratio of 31.0% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Pitney Bowes to earn $1.86 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 21.5%.

Pitney Bowes Trading Up 0.7%

NYSE:PBI opened at $17.41 on Thursday. Pitney Bowes has a 1-year low of $8.95 and a 1-year high of $19.07. The business's 50-day moving average price is $16.93 and its two-hundred day moving average price is $14.75. The firm has a market capitalization of $2.39 billion, a price-to-earnings ratio of 14.27, a PEG ratio of 0.70 and a beta of 1.66.

• Pitney Bowes NYSE: PBI is Surging, Is it Too Risky?

Pitney Bowes (NYSE:PBI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The technology company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.06. The company had revenue of $456.18 million during the quarter, compared to analyst estimates of $458.24 million. Pitney Bowes had a negative return on equity of 31.37% and a net margin of 10.04%. The company's revenue for the quarter was down .8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.31 EPS. Sell-side analysts predict that Pitney Bowes will post 1.68 earnings per share for the current year.

Pitney Bowes Company Profile

Pitney Bowes Inc NYSE: PBI is a global technology and services company that helps businesses manage mailing, shipping and related communications. Its offerings include postage meters, mailing systems, shipping software, parcel management tools, address and data services, and equipment financing and support.

The company serves small businesses, large enterprises and government organizations through solutions designed to streamline the preparation, processing and delivery of physical mail and packages.

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