Daily Stock Analysis: Hewlett Packard Enterprise - Take 4

Hewlett Packard Enterprise Co, known by the ticker symbol HPE, is a large cap communication equipment company in Texas and operates in the Technology business sector. This is my fourth report on HPE for my Viital stock portfolio, I selected it as my 26th pick for my previous Vista portfolio in March. 

Image: Hewlett Packard Enterprise

Hewlett Packard Enterprise Co is a supplier of IT infrastructure products and services. The company operates in three major segments. 

(1) Its hybrid IT division primarily sells computer servers, storage arrays, and Pointnext technical services. 

(2) The intelligent edge group sells Aruba networking products and services. 

(3) HPE's financial services division offers financing and leasing plans for customers. 

The company sells on a global scale and has approximately 66,000 employees.

It serves commercial and large enterprise groups, such as business and public sector enterprises; and through various partners comprising resellers, distribution partners, original equipment manufacturers, independent software vendors, systems integrators, and advisory firms. 

Hewlett Packard Enterprise Company was founded in 1939 and is headquartered in Houston, Texas.

Three key data points gauge any dividend equity or fund such as Hewlett Packard Enterprise Co (HPE):

(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's price per share was $15.77 as of Friday's market close. One year ago its price was $11.85. Therefore, Hewlett's share price rose $3.92 or 27.82% in the past year.

If HPE's stock trades in the range of $12.00 to $18.00 this next year, its recent $15.77 share price might rise by $1.73 to reach $17.50 by January 3, 2022. My estimate is the same as the median of 1yr price estimates from twenty-two analysts who track HPE for brokerages.

HPE Dividends

Hewlett's most recent quarterly dividend of  $0.12 is payable Friday, January 7th, to shareholders of record December 9th. That quarterly dividend, and the three estimated to come equal $0.48 annually and yield 3.04% per yesterday's $15.77 closing price. 

Hewlett Packard Enterprise Co (HPE) has paid increasing quarterly dividends since January 5, 2016. That will 6 years come Friday.

HPE Returns

Adding the $0.48 annual estimated HPE forward-looking dividend to my $1.73 price upside estimate shows a $2.21 potential gross gain, per share, to be reduced by any costs to trade HPE shares.  

At yesterday's $15.77 price per share, a little over $1000 would buy 63 shares.

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

Subtract that maybe $0.16 brokerage cost from my estimated $2.21 gross gain per share results in a net gain of $2.05 X 63 shares = $129.15 for a 12.9% net gain on a $993.51 investment.

So it is that Hewlett Packard Enterprise Co (HPE) shows a possible 12.9% net gain including a 3.04% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Hewlett Packard Enterprise Co (HPE) could generate $30.40 in cash dividends alone. Note that a single share of HPE stock bought at yesterday's closing price was $15.77. Therefore, HPE share price is almost two times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up Hewlett Packard Enterprise Co  (HPE) shares. The estimated next-year dividend from $1K invested is 1.927 times HPE's single share price. Consider yourself alerted. It's a sign!  

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

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.