Business process and document management company
) 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
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
Digital China Holdings Ltd.
), each carrying a Zacks Rank #2 (Buy), while
Concurrent Computer Corporation
) retains a Zacks Rank #1 (Strong Buy). Xerox currently has a
Zacks Rank #3 (Hold).
CONCURRENT NEW (CCUR): Free Stock Analysis
(DCHIF): ETF Research Reports
NCR CORP-NEW (NCR): Free Stock Analysis
XEROX CORP (XRX): Free Stock Analysis Report
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