Current Report: HP Inc.

macro photography of black circuit board

Image Source: Unsplash

HP Inc. bears the ticker symbol HPQ. This is my first report on HP Inc for my Viking portfolio.  However, I selected it as a candidate for two of my previous seven Dog of the Week portfolios.

HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise. HP focuses on the commercial market but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one-third of sales coming from the U.S. It completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015.

HP Inc. was founded in 1939 and is headquartered in Palo Alto, California.

Three key data points gauge

HP Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

HPQ Price

HPQ’s price per share was $27.80 at Wednesday’s market close. However, in the past year, HPQ’s share price fell by $3.77 or about 10.7%.

If HPQ’s stock trades in the range of $20.00 to $40.00 this next year, its recent $27.80 share price might reach $29.80 by next year. My upside increase estimate of $2.00 is in line with the median of one-year target stock price estimates from the 16 analysts covering HPQ for brokerage houses.

HPQ Dividends

HP Inc’s most recently declared quarterly dividend of $0.25 per share equals $1.00 annually to cast a yield of 3.60%.

HPQ Returns

Adding the $1.00 annual HPQ dividend to my one-year price upside estimate of $2.00 shows a $3.00 potential gross gain per share.

At Wednesday’s $27.80 closing price, a little over $1000 would buy 36 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.28 per share.

Subtracting that maybe $0.28 brokerage cost from my estimated $3.00 gross gain per share results in a net gain of $2.72 X 36 shares = $97.92 for a 9.8% net gain including a 3.97% annual dividend yield.

In a year our $1K investment in shares of HP Inc would generate $36.00 in cash dividends. Of course, a single share of HPQ stock at Wednesday's $27.80 price is over $8.00 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a likely time to buy HP Inc shares based on their dividends for the coming year 2022-23. The current dividend from the $1K invested is $8.20 greater than HPQ’s single share price. Consider yourself alerted. Now might be time for HP Inc.

All of the estimates above are speculation based on the past history of HP Inc. Only time and money invested in this stock will determine its market value.

More By This Author:

Daily Stock Analysis: ChipMOS Technologies
Daily Stock Analysis: Himax Technologies, November 2022
Current Report: Intel Corp. (INTC)

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.