So, you might think that Hewlett Packard Enterprise buying back stock, growing its EPS, and retaining profits within its business is a good combination. Should investors buy Hewlett Packard Enterprise for the upcoming dividend? The best dividend stocks typically boast a long history of growing earnings per share (EPS) via a combination of earnings growth and buybacks. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see. Since the start of our data, seven years ago, Hewlett Packard Enterprise has lifted its dividend by approximately 12% a year on average. We're curious about why the company paid out more cash than it generated last year, since this can be one of the early signs that a dividend may be unsustainable.Īnother key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Over the past year it paid out 114% of its free cash flow as dividends, which is uncomfortably high. A useful secondary check can be to evaluate whether Hewlett Packard Enterprise generated enough free cash flow to afford its dividend. Hewlett Packard Enterprise is paying out an acceptable 73% of its profit, a common payout level among most companies. As a result, readers should always check whether Hewlett Packard Enterprise has been able to grow its dividends, or if the dividend might be cut.Ĭheck out our latest analysis for Hewlett Packard Enterpriseĭividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. Based on the last year's worth of payments, Hewlett Packard Enterprise stock has a trailing yield of around 3.3% on the current share price of $14.33. The company's next dividend payment will be US$0.12 per share, and in the last 12 months, the company paid a total of US$0.48 per share. Meaning, you will need to purchase Hewlett Packard Enterprise's shares before the 16th of March to receive the dividend, which will be paid on the 14th of April. So if you miss that date, you would not show up on the company's books on the record date. The ex-dividend date is important as the process of settlement involves two full business days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. Hewlett Packard Enterprise Company ( NYSE:HPE) stock is about to trade ex-dividend in 4 days.
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