Pitney Bowes: Is the 6% Yield Worth the Risk?

Pitney Bowes (PBI), headquartered in Stamford, Connecticut, and founded 1920 is the world's largest manufacturer of postage meters and mailing equipment. The company operates in more than 100 countries throughout the world and employs some 35,000 people. There was a time, in the not-too-distant past, when Pitney Bowes was an above-average growth story, with a modest but above-average growing dividend yield. However, along came the Internet with its e-mail, fax machines, electronic billing, etc., and the growth dynamic of postage meters was forever changed. Even though the Internet changed the business dynamics of this blue-chip, Pitney Bowes today maintains the coveted status of a Dividend Aristocrat by logging 29 consecutive years of dividend increases through calendar year 2010. Although the following dividend graph from Pitney Bowes’ website validates this exceptional record of dividend growth, it also illustrates a major change since calendar year 2000. The statement of a 10% compound... Read more

Older articles featuring PBI: