Revenue and earnings growth
So far, we’ve seen that HP Inc.’s (HPQ) revenue and earnings rose at a robust pace in fiscal 2018. The company has reported double-digit year-over-year growth in the last five consecutive quarters.
HP has also managed to outperform the global PC market on a consistent basis. In the fourth quarter, HP’s number of Personal Systems units sold rose 6%, and its total sales rose 11%.
HP’s sales rose 7% in the Americas, 17% in the EMEA (Europe, the Middle East, and Africa) region, and 16% in the Asia-Pacific region during the fourth quarter of fiscal 2018. The encouraging revenue growth and cash flow resulted in significant payouts for investors in the form of dividends and share buybacks.
Dividends and buybacks
In fiscal 2018, HP paid $899 million to shareholders in the form of dividends and bought back shares worth $2.55 billion, bringing its total payout to $3.5 billion—52% higher than the $2.3 billion it returned in fiscal 2017.
In the fourth quarter, HP paid $219 million in dividends and repurchased shares worth $598 million. Its total payout was $817 million, 13% higher than its payout of $722 million in the fourth quarter of fiscal 2017.
HP has a dividend yield of 2.8%, or $0.64 per share. HP has increased its dividend yield 7% in the last year. Peer hardware companies Western Digital (WDC), Seagate (STX), and Apple have dividend yields of 4.4%, 5.9%, and 1.6%, respectively.