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Thursday, April 5, 2018

How HPE Is Rewarding Shareholders

HPE consistently rewards shareholders Hewlett Packard Enterprise (HPE) has been consistently rewarding shareholders with cash dividends and share buyback programs. In fiscal 2017, the company returned nearly $3.0 billion to shareholders in the form of share repurchases and dividends. HPE expects to return $7 billion to its shareholders in the form of dividends and share repurchases between fiscal 2018 and fiscal 2019. HPE’s chief financial officer, Tim Stonesifer, stated, “The buyback will be more weighted to the fiscal year 2018, but we will efficiently repurchase shares so that timing may not be linear. As always, we will continue to use our ROI based capital allocation framework.”
Dividends and share buybacks
@Hewlett Packard paid $120 million via dividends in 1Q18 and expects to increase its quarterly dividend by 50% in fiscal 3Q18. #HPE has a dividend yield of 1.7% as of March 28, 2018, and an annualized payout of $0.30, indicating a payout ratio of 21.4%. In comparison, the dividend yields of @IBM (IBM), @NetApp (NTAP), @Microsoft (MSFT), and @Cisco (CSCO) stand at 3.9%, 1.4%, 1.9%, and 3.2%, respectively.
Hewlett Packard returned $742 million via share repurchases to its shareholders in fiscal 1Q18. The company intends to make share repurchases of ~$5.5 billion by the end of fiscal 2019.
HPE has also stated that it will continue to take a disciplined approach to future mergers and acquisitions that are expected to drive its revenue growth and shareholder value

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