Dividends4Life: Hang On to Pitney Bowes Stock as Profits Rise

Hang On to Pitney Bowes Stock as Profits Rise

Posted by D4L | Saturday, November 08, 2014 | | 0 comments »

Incorporated in Delaware in 1920, Pitney Bowes (PBI) is a global provider of mail processing equipment and integrated mail solutions. In 2013, Pitney Bowes slashed its dividend in half and embarked on a reorganization that re-aligned the business into three PitneyBowesLogo Hang On to Pitney Bowes Stock as Profits Risebusiness segments. Pitney Bowes’ hopes to stabilize the mail business, achieve operational excellence and drive growth within the digital commerce solutions segment. Pitney Bowes is the market leader in mail processing but the market continues to face a slow and steady decline among increasing competition as business and marketing communication move to other methods.

With increasing earnings and sales growth, I would look for Pitney Bowes to reinstate its higher dividend rate in the next year or two as the dividend payout ratio drops below 50% on a consistent basis. Pitney Bowes is a stock with a good dividend yield in the short term and possible significant price appreciation in the mid-term. I would consider Pitney Bowes a long-term hold for income investors interested in PBI stock.

Source: InvestorPlace

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