Current Analysis: Xerox Holdings Corporation

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Xerox Holdings Corp (XRX) is an original equipment manufacturing and software company. Xerox operates in one segment--design, development, and sale of printing technology and related solutions--while deriving 60% of its revenue from the U.S. and 40% from international markets.

The company is an OEM of multifunction printers, or MFPs (printers that can print, copy, and scan), focusing on large enterprise markets.

Apart from equipment, the company provides post-sales services like managed print services--a service that helps to bring smart servicing and efficiencies to how employers use their print/copy equipment.

Xerox is attempting to enter new markets like digital print packaging solutions and printed electronics.

The company was formerly known as Xerox Corporation and changed its name to Xerox Holdings Corporation in August 2019.

Xerox Holdings Corporation was founded in 1903 and is headquartered in Norwalk, Connecticut.

Three key data points gauge Xerox Holdings or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

XRX Price

Over the past year, Xerox's share price fell over 7.8% from $14.78 to $13.62 as of Thursday’s market close.

If Xerox shares trade in the range of $12.00 to $20.00 this next year, its recent $13.62 share price might rise to $15.00 by next year. Of course, Xerox’s price could drop about the same $1.38 estimated amount or more.

My annual upside estimate of $1.38 however, is in line with the median of one-year target price estimates from four analysts tracking Xerox stock for brokers.

XRX Dividend

Xerox Holdings has paid variable January 1985. Xerox’s most recent Q dividend of $0.25 was declared on February 22nd for shareholders of record on March 27th and the payout was made on April 30th.

A forward-looking $1.00 annual dividend yields 7.34% at Thursday’s $13.62 share price.

XRX Returns

To put it all together, add the Xerox estimated annual dividend of $1.00 to the estimated price upside of $1,38 to find a $2.38 estimated gross gain for the coming year.

At Thursday’s $13.62 price, a little under $1000 would buy 73 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.14 per share.

Subtracting that likely $0.14 brokerage cost from the $2.38 gross gain reveals a net gain of $2.24 X 73 shares = $163.52 for a 16.4% estimated net gain on the year.

You might choose to pounce on Xerox Holdings. It is a 121 year-old dividend paying Norwalk Connecticut-based digital print technology firm.  Furthermore, its estimated $73.40 annual dividend income from $1k invested is over 5 times greater than Xerox’s recent $13.62 share price.

The exact track of Xerox Holdings Corp's upcoming future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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