In the wake of the spinoff of Conduent (CNDT) and in a move that was not unexpected, Xerox (XRX) cut its’ dividend from $0.075 cents to $0.0625 per share (-19.3%) effective with the April 28th payment.
Although this cut was in line with the spin ratio, I’ll place XRX in the penalty box as CNDT has no immediate plans to initiate a dividend. CNDT being the jewel in the spin is worthy of a speculative portfolio position as a hold. XRX will be retained for the time being as a possible takeover play. Perhaps RR Donnelley (or one of its’ recent spins) will rekindle talks in the future that were spurned last summer.
After going over a year without a cut, I now have two so far in 2017 (the other being YUM). The only solace being the common denominator is they are both the result of spin offs. The impact will be negligible as this position made up less than 1% of my portfolio dividends.