The board of Company Hewlett Packard Enterprise, listed on the New York Stock Exchange under HPE, recently announced an increased dividend payment of $0.13 which will be paid on January 11. This brings the annual payout to 3.1% of the share price, higher than many other companies in the same sector. This dividend is easily covered by the company’s earnings, with projections of a 22.3% increase in earnings per share in the upcoming year. The payout ratio is expected to be 29% next year, indicating a sustainable range.
Although Hewlett Packard Enterprise has been steadily increasing its dividend payments, its history is relatively short in comparison to other companies. The compound annual growth rate of the dividend over the years has been around 11%. While the dividend growth prospects may be limited, investors can still expect dividend income from the company, with earnings per share increasing by 3.7% annually.
Overall, the company’s ability to grow its dividend while keeping it in a sustainable range is promising. However, there are some concerns about the company’s dividend history and the potential for higher payout ratios in the future. It is important to note that consistent dividend policies instill greater investor confidence, and other factors should also be considered when evaluating a company for investment.
Readers interested in Hewlett Packard Enterprise should be aware of potential warning signs and explore other stocks with higher dividend yields. As always, it is recommended to conduct thorough research and consider all aspects of a company before making investment decisions. This article provides general analysis based on historical data and analyst forecasts and is not intended as financial advice.
Article Source
https://finance.yahoo.com/news/hewlett-packard-enterprises-nyse-hpe-122638659.html
