Xerox has announced that it will pay a quarterly dividend of 4.25 cents a share, its first dividend in six years.

From 1948 onward, Xerox was among the blue-chip industrial companies that regularly paid quarterly dividends to shareholders, uninterrupted. But in July 2001, amid an accounting scandal and growing debt, the company suspended its dividend of 5 cents a share. A year earlier, the dividend had been 20 cents.

At the time, Xerox said that the dividend's suspension would save it $140 million per year.

"With our return to investment grade, strong cash generation, and effective business model, we've significantly strengthened our financial position, providing flexibility for investing in our business and delivering shareholder returns," Anne M. Mulcahy, Xerox's chief executive, said in a statement. "Declaring a dividend and our continued share repurchase initiatives reflect the health of our business and our belief in the long-term value we're creating for Xerox shareholders."

The dividend will be payable on January 31, 2008, to shareholders of record on December 31, 2007.

Xerox also confirmed its earnings forecast for the year and says it expects higher earnings in 2008 and 2009.

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