Pitney Bowes Inc (NYSE:PBI)., despite facing a challenging financial situation, will trade ex-dividend in four days from Thursday. Investors aiming to secure the dividend must acquire shares before November 14th, a date that falls one business day ahead of the record date when the company identifies eligible shareholders for dividends.
On December 6th, Pitney Bowes has scheduled a dividend payment of $0.05 per share. This follows its total payout of $0.20 per share last year. Given the current share price of $4.06, this results in a trailing yield of 4.9%. However, investors are advised to scrutinize the sustainability of this yield and the associated dividends, considering the company's dividend payment strategy.
Throughout this year, Pitney Bowes has continued its dividend distribution despite suffering a loss after tax. This might be unsustainable in the long term without adequate cash flow support. The company might be compelled to dip into its cash reserves or borrow funds, strategies that could prove unsustainable over time. Last year's dividends consumed 74% of the company's free cash flow, a proportion typical for many dividend-paying organizations but significant given Pitney Bowes' financial health.
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