Xerox Holdings Corporation announced on May 22, 2025, that its Board of Directors approved an update to its dividend policy, reducing the quarterly dividend to $0.025 per share, or $0.10 per share annualized. This represents a further reduction from the $0.125 per share ($0.50 annualized) dividend announced in December 2024.
The decision reflects a prioritization of debt repayment following the anticipated closing of the Lexmark acquisition, as well as increased cost of capital due to rising yields on Xerox's publicly traded debt. The company also cited an acceleration in the expected timing of the Lexmark transaction close and ongoing tariff and trade-related volatility as factors requiring greater financial flexibility.
Xerox reiterated its 2025 guidance and continues to expect the Lexmark transaction to be de-levering upon close and immediately accretive to adjusted earnings per share and free cash flow. The company still anticipates at least $238 million in synergies from the Lexmark transaction, realizable within two years, and plans to re-evaluate capital allocation priorities as gross debt leverage is reduced towards its 3x target.
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