Hewlett Packard Enterprise Co, bearing the ticker symbol (HPE), has been mentioned and selected for one my previous Dog of the Week portfolios.  This, however, is its second mention as a candidate for my Viking portfolio. I last talked about HPE March 9.

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Hewlett Packard Enterprise is an information technology vendor that provides hardware and software to enterprises.

Its primary product lines are computer servers, storage arrays, and networking equipment; it also has a high-performance computing business.

HPE’s stated goal is to be a complete edge-to-cloud company, and its portfolio enables hybrid clouds and hyper-converged infrastructure. It uses a primarily outsourced manufacturing model and employs 60,000 people worldwide.

The company was founded in 1939 and is headquartered in Spring, Texas.

Three key data points gauge Hewlett Packard Enterprise Co 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.

HPE Price

HPE’s price per share was $15.69 at Tuesday’s market close. In the past year, its share price decreased about 0.5% from $15.79 to today’s $15.69.

If HPE’s stock trades in the range of $12.00 to $18.00 this next year, its recent $15.69 share price might get up to $17.00 by next year. Of course, HPE’s price could go down about the same $1.31 amount, or more.

My upside estimate of $1.31 is about $0.10 below the median of price estimates from 20 analysts tracking the stock for brokers.

HPE Dividend

The Enterprise’s recent $0.12 Quarterly-dividend equates to $0.48 annually to yield 3.06% at Tuesday’s closing price.

HPE Returns

Adding the $0.48 projected annual dividend to my estimated $1.31 price upside, reveals a $1.79 potential gross gain per share for the coming year.

At Tuesday’s $15.69 closing price, a little over $1000 would buy 64 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.16 per share.

Subtract that maybe $0.16 brokerage cost from my estimated $1.79 gross gain per share makes a net gain amount of $1.63 X 64 shares = $104.32 or a 10.4% net gain.

In the next year our $1K investment in shares of HPE could generate about $30.60 in dividends. Furthermore, a single share of HPE stock at Friday’s $15.62  closing price is about half the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a prime time to consider Hewlett Packard Enterprise Co  based on its estimated dividends for 2023. The dividend from $1k invested is 1.96 times greater than HPE’s single-share price. Consider yourself alerted.

This may be time to pounce on HPE. But beware, its price is volatile, and $3.72 below its all time $19.41 high posted in March of 2018.

The foregoing article is based on past history of Hewlett Packard Enterprise Co. The only true measure of future performance is from active investment in the company.

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