If you are interested in cashing in on Xerox Corporation’s (NYSE:XRX) upcoming dividend of $0.25 per share, you only have 3 days left to buy the shares before its ex-dividend date, 28 December 2017, in time for dividends payable on the 31 January 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Xerox can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Xerox
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its has increased its dividend per share amount over the past It is able to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward
High Yield And Dependable
The company’s dividend yield stands at 3.38%, which is high for tech stocks. But the real reason Xerox stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. XRX has increased its DPS from $0.68 to $1 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. Xerox has a payout ratio of 48.97%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 32.70%, leading to a dividend yield of 3.78%. Moreover, EPS is also forecasted to fall to $2.13 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward.
What this means for you:
Are you a shareholder? Investors of Xerox can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then Xerox is one worth keeping around. But, depending on your current holdings, it may be beneficial exploring other income stocks to increase diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.