Daily Stock Analysis: Hewlett Packard Enterprise Now

By Fredrik Arnold

Thursday, March 9, 2023 4:56 AM EDT

Hewlett Packard Enterprise Co bears the ticker symbol (HPE), and this is my first mention of HPE for this new Viking Portfolio, but I did select HPE for one of my previous seven dog of the week folios.

Freepik

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

Its primary product lines are compute 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 hyperconverged 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 HPE, or any dividend paying firm:

(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

Hewlett Packard Enterprise price per share was $15.10 at Wednesday’s market close. In the past year, HPE share price fell $0.67 or about 4%.

If HPE stock trades in the range of $10.00 to $18.00 this next year, its recent $15.10 share price might reach $17.25 by next year. That upside estimate of $2.10 is the median of price targets from 21 analysts tracking HPE.

HPE Dividend

Hewlett Packard Enterprise most recent annual dividend of $0.48 cast a forward annual yield of 3.18%.

HPE Returns

Adding the $0.48 annual estimated

HPE dividend to my one-year price upside estimate of $2.15 reveals a $2.63 potential gross gain estimate per share.

At Wednesday’s $15.10 closing price, a little under $1000 would buy 66 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $2.63 gross gain makes a net gain of $2.48 X 66 shares = $163.68 for a 16.36% net gain including the 3.18% annual dividend yield.

In the next year our $1K investment in shares of HPE could generate $31.80 in cash dividends. Furthermore, a single share of HPE at Wednesday’s $15.10 price is over 2 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to maybe buy Hewlett Packard Enterprise shares, based on their dividends for 2023. The current dividend from $1K invested is 2.1 times higher than the HPE single share price. Consider yourself alerted.

Now is the time to consider Hewlett Packard Enterprise Co shares.

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

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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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