NORWALK, Conn. - Xerox (NASDAQ:XRX) Holdings Corporation (NASDAQ: XRX) has announced the declaration of a quarterly dividend for its common and preferred stock. Shareholders of Xerox Holdings Corporation Common Stock will receive a dividend of $0.25 per share, payable on January 31, 2025, with a record date of December 31, 2024.
Additionally, a quarterly dividend of $20.00 per share has been declared for holders of the outstanding Xerox Holdings Series A Convertible Perpetual Preferred Stock. This dividend is set to be paid on January 2, 2025, to shareholders who are on record as of December 16, 2024.
Xerox, a company with a history spanning over a century, has evolved from its roots in office and production print technology to include software and services, aiming to support the hybrid workplaces of today and the future. The company emphasizes its commitment to innovation, client-centric technology solutions, and digital transformation to meet the needs of a global and distributed workforce.
The announcement of these dividends reflects Xerox's ongoing efforts to provide value to its shareholders. This financial decision is part of the company's broader strategy to sustain its market position and continue delivering workplace technology solutions across various environments.
The information provided in this article is based on a press release statement from Xerox Holdings Corporation.
In other recent news, Xerox Holdings Corporation reported a decline in its third-quarter revenue by 7.5%, landing at $1.5 billion, and a decrease in adjusted earnings per share (EPS) to $0.25. Despite these challenges, the company generated $107 million in free cash flow and is advancing its reinvention strategy, primarily focusing on digital and IT services. The upcoming acquisition of ITsavvy, a key part of this strategy, is expected to strengthen the company's IT service offerings and contribute to future revenue growth.
Operating expenses were reduced by over $50 million year-over-year, and the adjusted operating margin improved by 110 basis points to 5.2%. However, the company's full-year free cash flow guidance was adjusted to a range of $450 million to $500 million, down from a minimum of $550 million.
These recent developments indicate that Xerox is undergoing significant changes. The company anticipates a return to revenue growth in 2025, supported by the ITsavvy acquisition and improved sales productivity. However, Xerox revised its 2024 revenue decline forecast to around 10% in constant currency. The company remains confident in its reinvention strategy, which includes significant organizational changes and a workforce realignment.
InvestingPro Insights
Xerox's recent dividend declaration aligns with its track record of shareholder returns, as highlighted by InvestingPro data. The company boasts a significant dividend yield of 12.15%, reflecting its commitment to returning value to shareholders. This is further underscored by an InvestingPro Tip noting that Xerox has maintained dividend payments for 18 consecutive years, demonstrating a consistent focus on shareholder remuneration.
However, the company faces challenges. InvestingPro data shows a revenue decline of 9.76% over the last twelve months, with analysts anticipating further sales decline in the current year. This context adds importance to the company's dividend strategy as a means of maintaining investor interest.
Despite these headwinds, an InvestingPro Tip suggests that net income is expected to grow this year, potentially providing some financial flexibility for the company's dividend commitments. The stock's current trading near its 52-week low, as indicated by another InvestingPro Tip, may present an opportunity for investors interested in Xerox's dividend yield and potential turnaround.
For a more comprehensive analysis, InvestingPro offers 13 additional tips on Xerox, providing deeper insights into the company's financial health and market position.
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