By Colin Kellaher
Xerox Holdings is halving its rich dividend in connection with its $1.5 billion deal to buy printer maker Lexmark International.
Xerox on Monday said it will cut its annual payout to 50 cents, or 12.5 cents on a quarterly basis, from $1, starting with the dividend to be declared in the first quarter of 2025.
Xerox, which plans to fund the Lexmark deal with a combination of cash on hand and debt, said the dividend reduction will let the Norwalk, Conn., maker of printers and copiers pare its debt load while maintaining an above-market yield.
Based on Friday's closing price of $8.39, Xerox'x current $1 annual dividend offers a yield of 11.9%, which would drop to just under 6% at the new 50-cent annual rate.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 23, 2024 07:03 ET (12:03 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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