Ramona sells RRD 14.69: Leveraging a U.S. and international platform, knowledge-based work teams, and industry expertise, RR Donnelley's Global Outsourcing Services provides high-touch, mission-critical services that deliver unique and highly impactful solutions for clients.

More broadly, the Dow Jones Industrial Average stayed the same, the Nasdaq climbed 0.3% and the S&P 500 remained flat. The IAOP is a global organization dedicated to the development of standards within the outsourcing industry. In the past 52 weeks, RR Donnelley share prices have been bracketed by a low of $14.32 and a high of $20.21 and are now at $15.87, 11% above that low price. I think income investors should be prepared for the potential of a lower dividend, as management may use this breakup to reduce the overall dividend paid, as they mention growth being one of their key motivations, and growth doesn't come free. Management did, at least, let us know that the current dividend will be maintained going into the split, later next year.


Armida:
For income investors, if one were looking to maintain their current income stream, they may need to be prepared to sell shares in one or two of the companies, in order to load up on the highest-paying business.

Merna:
Management declined to comment on what the future dividend will look like under the split; however, I am left to assume that the traditional printing business will maintain a higher dividend rate than the other faster growing segments.

Haley:
If this is the case, then we can only assume that at least one or two of the companies will be paying a lower dividend, if any at all.

Margrett:
Getting back to my original thesis, if management truly is looking to grow the business lines, then they likely will need to invest more in acquisitions, CapEx, etc. as their current mix is not delivering robust growth.

Fawn:
So the question is, are we just going to see the fruits of these efforts now, as management unlocks shareholder value when they separate the businesses?

Anjanette:
The issue with all of this is that cashflow generation has never been terribly robust, and the payout ratio has historically been high.

Rosalind:
Source: RRD Q2 2015 Investor Presentation.

Patrica:
Obviously printing is still their bread and butter, but I have been impressed to see just how diversified their business has become.

Wynona:
What I find compelling about the company is that in the last 10 years they really have morphed from being solely a traditional printer into a multi-channel organization deriving revenue from many different streams.

Babara:
I probably should have held it longer.

R.R. Donnelley & Sons Company (NASDAQ:RRD)
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