Pitney Bowes (PBI)
What do you do when you’re essentially a print-oriented company trapped in a digital world?
If you’re Pitney Bowes (PBI), you sacrifice shareholders by taking the knife to your dividend.
In late April, PBI cut its payout in half as the mail-and-document-services giant continued to struggle. Declining revenue and weaker demand for mail products meant shareholders were presented with a payout of 18.75 cents per share vs. the 37.5 cents that was delivered to their financial mailboxes before the April cut.
Including the initial dip following the company’s announcement, PBI stock actually is up more than 30% since hacking away at its dividend. Nonetheless, I suspect the digital writing is on the wall here for Pitney Bowes. As such, if you still own PBI stock for the dividend, you might want to mark it “return to sender.”