Xerox Holdings Co. Plans Quarterly Dividend of $0.03 (NASDAQ:XRX)

Key Points

• Xerox declared a quarterly dividend of $0.025 per share, payable October 30 to shareholders of record September 30, representing an annualized yield of approximately 3.2%.
• The dividend appears well covered, with a current payout ratio of 6.7% and an expected future payout ratio of 11.5%, although payments have declined by an average of 0.3% annually over the past three years.
• Xerox shares opened at $3.14 after falling 2.8%; analysts maintain a consensus “Reduce” rating, with an average price target of $3.45.

Xerox Holdings Co. (NASDAQ:XRX - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Stockholders of record on Wednesday, September 30th will be given a dividend of 0.025 per share by the information technology services provider on Friday, October 30th. This represents a c) annualized dividend and a dividend yield of 3.2%. The ex-dividend date of this dividend is Wednesday, September 30th.

Xerox has decreased its dividend payment by an average of 0.3%per year over the last three years. Xerox has a payout ratio of 6.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Xerox to earn $0.87 per share next year, which means the company should continue to be able to cover its $0.10 annual dividend with an expected future payout ratio of 11.5%.

Xerox Stock Down 2.8%

Shares of XRX opened at $3.14 on Thursday. Xerox has a 1 year low of $1.19 and a 1 year high of $4.60. The firm has a market cap of $410.65 million, a P/E ratio of -0.43 and a beta of 2.40. The stock has a 50 day simple moving average of $3.03 and a two-hundred day simple moving average of $2.32. The company has a debt-to-equity ratio of 12.58, a current ratio of 1.18 and a quick ratio of 0.85.

Analyst Upgrades and Downgrades

XRX has been the subject of several analyst reports. Citigroup restated a "neutral" rating and set a $3.45 price target (up from $2.50) on shares of Xerox in a research report on Friday, July 31st. Weiss Ratings restated a "sell (d-)" rating on shares of Xerox in a report on Friday, July 24th. Finally, Zacks Research raised Xerox from a "strong sell" rating to a "hold" rating in a research note on Thursday, April 30th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Xerox presently has a consensus rating of "Reduce" and an average price target of $3.45.

About Xerox

Xerox Holdings Corporation NYSE: XRX is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.

Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.

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