HP Continues to Reward Shareholders with Dividends and Buybacks

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Date: 20.03.2019

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HP rewards shareholders

HP (HPQ) has been rewarding its shareholders with dividend payments and share buybacks. HP returned 83% of its free cash flow to its shareholders via dividends and share buybacks in fiscal 2018. In comparison, the company returned 69% of the free cash flows to its shareholders in fiscal 2017. In the first quarter of fiscal 2019, HP returned $1 billion to shareholders via dividends and share buybacks.

HP Continues to Reward Shareholders with Dividends and Buybacks

Share buybacks and dividends

During the first quarter, the company spent around $0.7 billion in cash to repurchase approximately 32.4 million shares, which means that HP returned 144% of its first-quarter free cash flow to its shareholders.

HP generated free cash flow of $0.7 billion in the first quarter. Cash flow from operations was $862 million, while capital expenditure was $189 million in the quarter. HP continues to expect fiscal 2019 free cash flow of at least $3.7 billion.

HP spent $0.2 billion to pay a cash dividend of $0.1602 per share in the first quarter. HP’s dividend yield was 2.69% as of February 27, 2019, and its annualized payout was $0.64, indicating a payout ratio of 31.7%. In comparison, the dividend yields of Hewlett Packard Enterprise (HPE), Juniper (JNPR), NetApp (NTAP), and Cisco Systems (CSCO) stand at 2.69%, 2.77%, 2.42%, and 2.71%, respectively.

 

Source: articles.marketrealist.com

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