Daily Stock Analysis: HP Inc.

HP Inc, known by the ticker symbol HPQ, is a large cap computer hardware firm in the Technology business sector. This is my first report on HPQ for my Viital stock portfolio and it was selected as the twenty-fourth pick for my Volio portfolio number 5 in February 2020.

macro photography of black circuit board
Image Source: Unsplash

HP Inc. is a leading provider of computers, printers, and printer supplies. The company's three operating business segments are its personal systems, containing notebooks, desktops, and workstations; and its printing segment which contains supplies, consumer hardware, and commercial hardware; and corporate investments. 

In 2015, Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise, and the Palo Alto, California-based company sells on a global scale.

HP Inc. was founded in 1939.

Three key data points gauge dividend equities or funds like HP Inc (HPQ):

(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

HP Inc's price per share was $30.47 as of Friday's market close. One year ago its price was $18.25. So, HPQ's share price increased by over 66% in the past year.

If HPQ's stock trades in the range of $20 to $35.00 this next year, its recent $30.47 price will likely rise by $2.53 to reach $33.00 by October 25, 2022. My estimate is $0.39 greater than the median one-year target estimate by the eighteen analysts who track the stock for brokers.  

HPQ Dividends

HP Inc's most recent quarterly dividend of  $0.1938 was paid out on October 6, to shareholders. The resulting annual payout of $0.78 yields 2.54% based on Friday's $30.47 closing price. HPQ has paid regular quarterly dividends increasing annually since October 2009: That is 12 years of increases. 

HPQ Returns

Adding the $0.78 annual estimated HPQ forward-looking dividend to my $2.53 price upside estimate shows a $3.31 potential gross gain, per share, to be reduced by any costs to trade HPQ shares.  

At Friday's $30.47 price per share, a little over $1000 would buy 33 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.30 per share.

Subtract that maybe $0.30  brokerage cost from my estimated $3.31 gross gain per share results in a net gain of $3.01 X 33 shares = $99.33 for a 9.3% net gain on a $1,005.51 investment.

So it is that HP Inc (HPQ) shows a possible 9.3% net gain including a 2.54% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in HP Inc (HPQ) could generate $25.40 in cash dividends alone. And a single share bought at yesterday's closing price was $30.47! Thus, HP Inc's share price is $5.07 greater than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is NOT the time to pickup HPQ  shares. The estimated next year's dividend from $1k invested is over $5 below the single share price. Consider yourself alerted to wait for the HPQ price to pull back to $28.00. It's a sign! 

All of the estimates above are speculation based on the past history of HP Inc (HPQ). 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 ...

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