It’s a mark of Xerox’s progress away from the brink that the company today announced that it would start paying dividends again, after a six-year hiatus. The dividend is small enough (4.25 cents per share as the stock is worth around $19 a share), but it is hopeful sign for the company.
In addition, Moody’s recently raised the company’s bonds up one notch. Xerox’s bonds made it out of the junk category to investment grade only this year.
The Bloomberg News report gives the details:
Chief Executive Officer Anne Mulcahy is raising revenue by adding color products that print, copy, scan and fax. Color pages are five times more profitable than black-and-white prints. The company has introduced 18 color devices this year. Xerox boosted operating cash flow to $1.5 billion this year, and said it will increase to $1.6 billion in 2008.”
Congrats to Xerox for its amazing recovery.