Current Analysis: Xerox Holdings

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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.

 Xerox Holdings Corporation was founded in 1906 and is headquartered in Norwalk, Connecticut.

Three key data points gauge Xerox 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 rose about 13% from $16.38 to $18.53 as of Thursday’s market close.

If Xerox trades in the range of $12.00 to $22.00 this next year, its recent $18.53 share price might rise to $20.50 by next year. Of course, Xeroxs price could drop about the same $1.97 estimated amount or more.

My annual upside estimate of $1.97 however, is in line with the past year's Xerox share price gain.

XRX Dividend

Xerox Holdings Corp has declared variable quarterly dividends since January 1985. Xerox’s most recent Q dividend of $0.25 was declared on October 19 to shareholders of record on December 28th. The annual payout totaled $1.00 and the latest quarterly payment was made on January 21st.

A forward-looking $1.00 annual dividend yields 5.40% at Thursday’s $18.53 share price.

XRX Returns

To put it all together, add the estimated annual dividend of $1.00 to the estimated price upside of $1.97 to find a $2.97 gross gain.

At Thursday’s $18.53 share price, a little over $1000 would buy 54 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.185 per share.

Subtracting that likely $0.185 brokerage cost from the $2.97 gross gain produces a net gain of $2.785 X 54 shares = $150.39 for a 15% estimated net gain.

You might choose to pounce on Xerox Holdings Corp as it is a 118-year-old Connecticut-based digital technology company.

Furthermore, the estimated $54.00 annual dividend income from $1k invested is over 2.9 times greater than Xerox’s recent $18.53 single share price.

The exact track of Xerox’s ongoing future price and dividend will be determined by market action.

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


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Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.

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