Thread regarding Xerox Corp. layoffs

Assuming no drop in stock price ex dividend is your error. Generally the price of a stock drops by the amount of dividend ex dividend date. investing 101 boys and girls

Quite a bit of arguing the same point here.

You buy XRX on Dec 31 and sell on Jan 4. Assuming no movement in share price, you have neither gain nor loss. But you will get your $.25/share on Jan 29. Use your own math to determine what that dividend would be if annualized. OP is suggesting this announcement is a tactic to entice investors. Use of word “blatant” implies manipulation of unwary investors to drive share price up.

Typo in previous post 12/31/20, not 12/13/20. Otherwise, spot on.

And that last post is as ignorant as most others. No one implied trading stock for dividend payouts was illegal. It’s simply not a method to make a gain. Take two seconds and think about it. If a company is worth x, and pays out a dividend of y, the company instantly becomes valued at x-y. There is no calculation for percent of gain as OP suggests. Dividends are paid to shareholders on record as of 12/13/20. Payout on 1/29/21 doesn’t mean the share must still be owned on that date. The shares can be sold on 1/1/21 and the holder will still receive the dividend payout. - The ignorance continues to amuse.

And last post is a mirror of what is going wrong with society today fueled by the average persons ability to Google.

OP mentioned tax implications and also was implying the uninformed who fall for this “blatant” ploy are s—ers.

Also it is entirely legal to buy XRX so you hold it on the date that gives you future dividend, then sell before the market adjusts after dividend payout. I think that risky and taxable move is what OP is calling out Xerox for promoting with the new dividend “deal”announcement.

Buying a stock just prior to dividend payout does not provide a return. It’s not how markets work. When a stock dividend is paid, the stock's price immediately falls by a corresponding amount.
The market effectively adjusts the stock's price to reflect the lower value of the company, which could wipe out any gain sought by a short-term buyer.
In addition, the buyer owes taxes on those dividends.
Obviously this board has posters who have no knowledge of business or market dynamics. Just take a tiny bit of time and educate yourselves.

Math wiz observer: the ex-dividend date range is 30 days ahead. You make .25/$19 or whatever share price is. On a 30 day investment. So to annualize you multiply by 12. I never said you would get that annual return.

All most of us can do is stay and grit our teeth 40+ hrs a week or leave. It will go on regardless.

i think the math you are trying to do is: ($0.25/$19) x 4 = 5%. The dividend is paid quarterly, not monthly.

To @1vsh / Laughing Observer:

(.25/$19) x 12 months. The math is accurate. I don’t work for Xerox.

Its about a $6M payment to Icahn. He makes $25M a year in dividends off Xerox. Take a second for that to sink in. We are all working for Icahn, not Xerox. Icahn doesn't give a flying f— about employees or the brand. Just wants his money. And hopefully pulls off an exit strategy to dump the stock and leave the Company left for dead. Immoral. Nope. Wall street at its finest. I wake up everyday so inspired to work for Icahn. Actually, I don't "work". Like Icahn collecting his dividend, I simply collect my paycheck.

15% annualized? Where did you learn math? If you work for Xerox, it’s no wonder why this company is failing. Without competent employees you can be a competent company. Most posters on this board have zero basic business knowledge. Comical.

I wish everyone here thought like @goz.

It is truly sad to see how many people talk about xerox as though it’s an entity that would take care of them. There are companies out there that might treat their employees like that, but not publicly traded.

Xerox is bad because it’s in decline, so the squeeze gets felt - but every public company will treat you awfully the minute you don’t benefit them more than they benefit you.

Stop loving this company, don’t love any company: because a company can’t love you back. Stop losing your mind like these decisions are a personal attack. Whether you like it or not, they’re just business. Capitalism, economic Darwinism at work. It’s not fun to accept, but you, me — us, we’re the weaker beast. No amount of chest puffing and claiming how SKY IS FALLING, ZEROX LOL will change that.

Yes, it's all about profit. That's a given. But why doesn't every other fortune 500 company do the same thing and raid the cash account to pay special dividends like X is probably going to do?

Because at most other companies the perks like 401k matching are done to keep and obtain employees.

Which tells me X is willing to do away with the perks and instead hand the cash to Icahn because they don't care about keeping or obtaining employees. Icahn is the only thing that matters now.

Xerox will dividend itself into bankruptcy. They just borrowed 800 million through bonds to pay for this c-ap.

You all seem to think Corporate America has a heart. It’s baffling. It’s all about profits and when there are none they will do whatever they have to do to make this attractive to investors so those that have the biggest stake in the company reap the rewards. The pursuit of $40 is still in play. I personally think they’ll never see it and have to break up the company to get their money.

So what they're doing is taking the funds that would have been used for our 401k matching and giving it to Icahn.

Just remember who keeps buying more Xerox stock and you'll understand why the company keeps paying dividends even while income continues to plummet and sales continues to evaporate.

It’s a good way to slap lipstick on that pig. With such abysmal revenue results, what else do they have to offer the shareholders ? They can keep this up for a while but once investors realize that the business model is pooched long term (& the revenue is not returning, COVID or not) the house of cards should begin to come down.
This company is going places...the question is: will you be joining them?