Daily Stock Analysis: Hewlett Packard Enterprise Co.

Hewlett Packard Enterprise Co., known by the ticker symbol HPE, is a large cap communication equipment maker in the technology business sector. This is my second report on HPE for my Viital stock portfolio. I last reviewed HP Enterprise on October 29th for this Viital (my seventh) portfolio.

Hewlett Packard Enterprise is a supplier of IT infrastructure products and services. The company operates in three major segments. Its hybrid IT division primarily sells computer servers, storage arrays, and Pointnext technical services. The intelligent edge group sells Aruba networking products and services. HPE's financial services division offers financing and leasing plans for customers. The company sells on a global scale and has approximately 66,000 employees.

macro photography of black circuit board
Image Source: Unsplash

The company has strategic alliances with The Swiss National Supercomputing Centre, NVIDIA, Citrix Systems, Inc., and Wipro Limited. 

Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Houston, Texas.

Three key data points gauge any dividend equity or fund such as Hewlett Packard Enterprise Co. (HPE):

(1) Price

(2) Dividends

(3) Returns

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

HPE Price

Hewlett Packard Enterprise Co.'s price per share was $14.59 as of yesterday's market close. One year ago its price was $11.04. Thus, HPE's share price grew about 31.25% in the past year.

If HPE's stock trades in the range of $12.00 to $18.00 this next year, its recent $14.59 share price could rise by $2.51 to reach $17.00 by November 30, 2022. My estimate is $0.60 below the median of the twenty-two analyst estimates who cover Hewlett Packard Enterprise Co. for their brokerage firms.

HPE Dividends

Hewlett Packard Enterprise's most recently announced quarterly dividend of  $0.12 was paid out October 6th  to shareholders of record September 10th. The compounded annual payout of $0.48 yields 3.29% per yesterday's $14.59 closing price. 

Hewlett Packard Enterprise Co. has paid quarterly dividends increasing generally annually since January 2016. That makes nearly 6 years of increasing payouts. 

HPE Returns

Adding the $0.48 annual estimated HPE forward-looking dividend to my $2.51 price upside estimate shows a $2.99 potential gross gain, per share, to be reduced by any costs to trade HPE shares.  

At yesterday's $14.59 price per share, a little over $1000 would buy 69 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $2.99 gross gain per share results in a net gain of $2.85 X 69 shares = $196.65 for a 19.65% net gain on a $1.006.71 investment.

So it is that Hewlett Packard Enterprise Co. shows a possible 19.65% net gain including a 3.29% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Hewlett Packard Enterprise Co. could generate $32.90 in cash dividends alone. Note that a single share of HPE stock bought at yesterday's closing price was $14.59! Thus, Hewlett Packard Enterprise Co. share price is nearly 125%  less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up Hewlett Packard Enterprise Co. shares. The estimated next-year dividend from $1k invested is nearly 125% greater than the single share price. Consider yourself alerted. It's a sign!  Now may be prime time to buy Hewlett Packard Enterprise Co. shares.

All of the estimates above are speculation based on the past history of Hewlett Packard Enterprise Co. (HPE). Only time and money invested in this stock will determine its market value.

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, ...

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