By Stephen Nakrosis
Xerox Holdings cut its quarterly cash dividend to 2.5 cents per share from 10 cents ahead of its planned acquisition of Lexmark.
"Consistent with our previously stated capital allocation priorities to reduce leverage post-closing, we believe reducing our dividend creates greater financial flexibility to deploy cash in the most accretive manner," Chief Financial Officer Mirlanda Gecaj said Thursday.
The new dividend, equal to 10 cents per share annually, will be payable on July 31 to shareholders of record on June 30. Based on the latest closing share price of $5.12, Xerox's new payout represents a yield of almost 2%.
Xerox in December disclosed plans to reduce its dividend in conjunction with the deal for Lexmark. Since then yields on the Xerox's publicly traded debt have risen, increasing the cost of capital and placing greater value on debt reduction, the company said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
May 22, 2025 17:02 ET (21:02 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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