Photo by Brooke Cagle on Unsplash
 

HP Inc bears the ticker symbol HPQ, and this is my third mention of HPQ for this Viking Portfolio. I have, also, selected HPQ for some of my previous seven dog of the week portfolios.

HP (formerly Hewlett-Packard) is a behemoth in the PC and printing markets. It has focused on these markets since it exited IT infrastructure in 2015 with the split from Hewlett Packard Enterprise.

HP focuses on the commercial market but maintains sales of consumer devices and printers. The firm has a broad and global customer base, with only one-third of sales coming from the U.S.

It completely outsources manufacturing and relies heavily on channel partners for its sales and marketing.

The company was formerly known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015.

Three key data points gauge HP Inc or any dividend-paying firm. They are:

(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’s price per share was $29.27 at Tuesday’s market close. In the past year, HP Inc’s share price fell $7.52 or about 20%.

If HPQ’s stock trades in the range of $25 to $35.00 this next year, its recent $29.27 share price might rise to $30.75 by next year. It could go down about the same amount. My upside estimate of $1.48 is about $3.28 below the average annual price gain of $4.76 HPQ has maintained over the past three years. Fifteen analysts cover HP Inc’s stock for brokers. So average upside/downside is just a default indicator.
 

HPQ Dividend

HP Inc’s quarterly dividend is projected by YCharts to be $0.2625 as of its most recent April 5 payout to shareholders of record March 7.
 

HPQ Returns

Adding the $1.05 estimated annual estimated HPQ dividend to my $1.48  estimated price upside reveals a $2.53 potential gross gain per share for the coming year.

At Monday’s $29.27 closing price, a little under $1000 would buy 34 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.29 per share.

Subtracting that maybe $0.29 brokerage cost from my estimated $2.53 gross gain estimate makes a net amount of $2.24 X 34 shares = $76.16 or a 7.6% net gain.

In the next year, our $1K investment in shares of HPQ will generate about $35.90 in dividends. Furthermore, a single share of HPQ at Tuesday’s $29.27 price is almost 1.25 times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a good time to consider HPQ shares, based on their dividends for 2023. The dividend from the $1k invested is 1.23 times greater than HPQ’s single-share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of HP Inc. Only time and money invested in this stock will determine its future market value.

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