Pitney Bowes Prepares to Pay Dividend, Earnings and Dividend Growth Remain Positive

Pitney Bowes Inc. (NYSE:PBI) is about to pay a dividend of $0.08 per share on September 8th. The company's trailing yield is 2.5%, and its payout ratio is modest at 29% of profit. Pitney Bowes' dividend is covered by both profits and cash flow, indicating a sustainable dividend. The company's earnings per share have been growing, making it a potentially attractive dividend stock.

Pitney Bowes Inc. (PBI), a leading provider of mailing equipment and software solutions, is set to pay a dividend of $0.08 per share on September 8th. This dividend marks a continuation of the company's consistent payout strategy, with a modest payout ratio of 29% of profit. The dividend is supported by both the company's earnings per share (EPS) and cash flow, indicating a sustainable dividend policy [1].

The company's trailing yield stands at 2.5%, which is higher than the industry average of 2.28% and the S&P 500 yield of 1.48%. This attractive yield is a significant draw for income investors, who prioritize consistent cash flow from their investments. Pitney Bowes' dividend has been growing, with an annualized dividend of $0.28 up by 40% from last year. Over the past five years, the company has increased its dividend an average of 2.90% per year [1].

Pitney Bowes' dividend growth is expected to continue, driven by solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.29 per share, representing a year-over-year growth rate of 57.32%. The company's earnings growth is supported by its two core businesses: Presort and SendTech. Presort, which controls approximately 25% market share in mail sortation, generated $671 million in revenue and $217 million in EBITDA over the trailing twelve months. SendTech, a dominant equipment leasing, SaaS, and payments platform with 70% market share, produced $1.25 billion in revenue and $418 million in EBITDA at a 33.5% margin [2].

The company's recent appointment of Kurt Wolf as CEO, who brings a proven capital allocation track record and a commitment to shareholder returns, further bolsters its investment thesis. Wolf's leadership has already led to significant improvements in the company's financials, with the stock price appreciating by approximately 21% since March 2025 [2].

In addition to its attractive dividend and strong earnings growth, Pitney Bowes is also expected to execute a $150 million share buyback program this year. This disciplined capital allocation strategy, combined with minimal competitive threats in a highly regulated market, creates significant upside potential for the company's stock [2].

References:
[1] https://finance.yahoo.com/news/pitney-bowes-pbi-could-great-154502017.html
[2] https://finance.yahoo.com/news/pitney-bowes-inc-pbi-bull-182336678.html