Hewlett Packard Enterprise Co, known by the ticker symbol HPE, is a large cap communications equipment firm in the Technology business sector. This is my first report on HPE for my Viital stock portfolio and it was the twenty-sixth stock selected for my Vista portfolio (number 6).

Image Source: Unsplash

Hewlett Packard Enterprise is a supplier of IT infrastructure products and services. The company operates as 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.

The company has strategic alliances with The Swiss National Supercomputing Centre and 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's price per share was $14.76 as of yesterday's market close. One year ago its price was $8.80. So, HPE's share price soared about 67.7% in the past year.

If HPE's stock trades in the range of $9 to $18.00 this next year, its recent $14.76 price could rise by $2.24 to reach $17.00 by October 29, 2022. My estimate is $0.40 less than the median of target price estimates from 23 analysts tracking HPE for brokerage houses.  

HPE Dividends

Hewlett Packard's most recent quarterly dividend of  $0.12 was paid out on October 6th, to shareholders. The resulting annual payout of $0.48 yields 3.25% based on yesterday's $14.76 closing price. HPE has paid quarterly dividends increasing generally annually since January 2016: That is 5 years of payouts. 

HPE Returns

Adding the $0.48 annual estimated HPE forward-looking dividend to my $2.24 price upside estimate shows a $2.72 potential gross gain, per share, to be reduced by any costs to trade HPE shares.  

At yesterday's $14.76 price per share, a little over $1000 would buy 68 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $2.72 gross gain per share results in a net gain of $2.57 X 68 shares = $174.76 for a 17.45% net gain on a $1,003.68 investment.

So it is that Hewlett Packard Enterprise Co (HPE) shows a possible 17.45% net gain including a 3.25% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Hewlett Packard Enterprise Co (HPE) could generate $32.50 in cash dividends alone. Note that a single share bought at yesterday's closing price was $14.76! Thus, Hewlett Packard's share price is about 2.2 times LESS than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now IS the time to pickup HPE shares. The estimated next year's dividend from $1k invested is over 2,2 times above the single share price. Consider yourself alerted. It's a sign! 

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.