Daily Stock Pick: HP Inc. (HPQ)
The portfolio of stocks I started last week, named Volio Folio, holds 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!
I'll be reviewing the first of five technology sector stocks this week striving to be picked to join the Volio folio collection. This would be the second pick for Volio!
Today's 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 computer systems firm named HP Inc. Their trading ticker symbol is HPQ.I previously reported on this company on May 18, 2018, for my Safari portfolio and June 11, 2019, for the Ivy portfolio, It has yet to be picked!
HP Inc. is a leading provider of computers, printers, and printer supplies.
The company's two operating business segments are its personal systems, containing notebooks, desktops, and workstations and its printing segment which contains supplies, consumer hardware, and commercial hardware. In 2015,
Hewlett-Packard was separated into HP Inc. and Hewlett Packard Enterprise. The Palo Alto, California based company sells on a global scale with 63% of fiscal 2017 revenue derived from outside the United States.
I use three key data points to gauge dividend-paying equities or funds like HP Inc. (HPQ):
(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.
HPQ Price
HPQ's price per share closed at $19.10 Friday. A year ago its price was $17.06. In a year its price rose $2.04 or 11.35%.
Assuming HPQ's stock trades in the range of $10 to $25.00 this year, HPQ's recent $19.10 price could rise by $1.40 and get to $20.50 by early September 2020.
HPQ Dividends
HPQ's latest declared quarterly dividend was $0.1602 payable October 2nd.
That $0.16 Q payout added to the previous 3equates to $0.64 annually and yields3.35% based on Friday's $19.10 closing price.
HPQ Gains?
Adding the $0.64 annual estimated dividend to my $1.50 estimate of HPQ's price upside shows a $2.14 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little under $1,000.00 today at the $19.10 recent stock price, we'd buy 52 HP Inc. (HPQ) shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.19 per share.
Subtract that $0.19 brokerage cost from the estimated $2.14 gross estimated gain leaves a net gain of $1.95 X 52 shares = ($101.40) or a 10.15% net gain on a $993.20 investment.
Therefore, HP Inc,whose trading ticker symbol is HPQ now shows a possible net gain of 10.15% including a 3.35% dividend yield. It could be more, it could be less.
The speculation is based on past year performance. The actual results remain to be seen to learn if HP Inc (HPQ) 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 ...
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