Xerox Holdings (XRX) has underperformed the overall general market substantially. Since the beginning of the year, Xerox has declined by nearly 50%, while the S&P 500 has been down by only 1.14%. At the current price, Xerox’s dividend yield is quite juicy, at 5.7%. However, if the company does not invest in high-growth industries, including 3D printing technologies, we do not think Xerox’s dividend could be sustainable.
Declining first-quarter operating performance
In the first quarter of 2020, Xerox experienced declining operating performance, due to the COVID-19 global lockdown. Its revenue dropped by nearly