Daily Stock Pick: Hewlett Packard Enterprise - Friday, December 20

A portfolio of stocks I've been building since September 3 is named Volio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fifth of five technology sector stocks striving to join my Volio folio. This could be the sixteenth pick for Volio!

That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology, and services, to internet, scientific instruments, software, solar, and all such techno-marvels.

My subject today is a large-cap communication equipment firm, named, Hewlett Packard Enterprise Co. Their trading ticker symbol is HPE. This is my first report on HPE.

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 California-based company sells on a global scale and has approximately 66,000 employees.

Hewlett Packard Enterprise Company was founded in 1939 and headquartered in San Jose, California.

I use three key data points to gauge dividend-paying equities or funds like Hewlett Packard Enterprise Co (HPE):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

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

HPE Price

HPE's price per share closed at $15.75 yesterday. A year ago its price was $13.17. So, in the past year, its price moved up $2.58, or just about 19.6%.

Assuming HPE's stock trades in the range of $13 to $18 this next year, it's recent $15.75 price could rise by $1.25  to reach $17.00 by late-December, 2020, assuming upward price momentum kicks in again.

HPE Dividends

HPE's latest declared quarterly dividend was $0.12 per share payable January 2nd.

That $0.12 Q dividend equates to $0.48 annually and yields 3.05% based on yesterday's $15.75 closing price.

HPE Gains?

Adding the $0.48 annual estimated dividend to my $1.25 optimistic estimate of AVX's price upside shows a $1.73 potential gross gain, per share, which will be reduced by any costs to trade these shares.

As for costs, if we put a little under $1,000.00 today in Hewlett Packard Enterprise Co at its recent $15.75 price, would buy 63 shares of HPE.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.16 per share.

Subtract that $0.16 brokerage cost from the estimated $1.73 gross estimated gain per share leaves a net gain of $1.57 X 63 shares = $98.91 or a 9.9% net gain on a $992.25 investment.

Therefore, Hewlett Packard Enterprise Co, whose trading ticker symbol is HPE shows a possible 9.9% net gain including a 3.05% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if Hewlett Packard Enterprise Co, is worth your time and money.

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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