After two nasty dividend cuts on S&P 500 stocks earlier this year, it's not surprising that investors are questioning the likelihood of Pitney Bowes (PBI), which offers the 2nd-highest yield in the S&P 500 at 10.5%, sustaining this generous payout. While the CenturyLink (CTL) and Cliffs Natural Resources (CLF) reductions announced on February 13th were surprises that led to sharp declines in their stocks, there has been significant discussion about PBI already. Adding fuel to the fire regarding a potential reduction, the company skipped raising it in January, breaking from its historical practice in recent years. I believe that the recent pullback reflects nervousness regarding this issue, as the company will be reporting Q1 EPS on 4/30 and hosting an Investor Meeting on 5/3. While PBI's board could decide to reduce the payment, it would be unnecessary in my view. Given some concern perhaps that they might be about to do so, maintaining the dividend might serve as a near-term positive catalyst for PBI.
PBI has an impressive history of dividend growth.READ MORE at Seeking Alpha