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Business process and document management company Xerox Corp. (XRX - Analyst Report) recently declared a dividend of 5.75 cents per share or 23 cents on an annualized basis. The second quarter 2013 dividend is payable on Jul 31 to shareholders of record as of Jun 28.

Xerox had earlier hiked its dividend payout in first quarter 2013 by 35% year over year. Based on the closing price of $8.81 on May 22, 2013, the dividend affirms a yield of 2.6%. A steady dividend payout is part of the long-term strategy of Xerox to provide attractive risk-adjusted returns to its stockholders.

The company also has a share repurchase program in place, under which it repurchased shares worth $1.05 billion in 2012. Xerox has consistently returned significant cash to its shareholders through dividends and share repurchases. In 2013, the company intends to have similar share repurchase levels as in the previous year.

In addition, Xerox has a healthy liquidity position. Cash and cash equivalents aggregated $993 million at quarter-end. In order to better adapt to the changing market trends, Xerox is continually shifting its business model by expanding its indirect distribution channel and streamlining its supply chain and product portfolio. The company expects these operational changes to yield higher margins going forward, thereby enabling it to maintain its strong market share in Document Technology business.

Headquartered in Norwalk, CT, Xerox is a leader in the development, manufacture, marketing, servicing and financing of document equipment across the world. The company also provides extensive leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size.

The company has three segments – Technology, Services and Others. Xerox is looking forward to expanding its offerings through inorganic measures and new acquisitions, which in turn, will help it to add more clients to its portfolio.

Xerox currently has a Zacks Rank #3 (Hold). Other players in the industry worth reckoning include NCR Corp. (NCR - Analyst Report), Concurrent Computer Corporation , and Mentor Graphics Corp. (MENT - Snapshot Report), each carrying a Zacks Rank #2 (Buy).

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