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A Look at HPE’s Capital Return Policy

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HPE consistently rewards shareholders 

Hewlett Packard Enterprise (HPE) has been consistently rewarding shareholders with cash dividends and share buyback programs. In fiscal 2018, the company returned nearly $4.1 billion to shareholders in the form of share repurchases and dividends, 39% higher than the year-ago period. Hewlett Packard, which along with HP (HPQ) was split from Hewlett Packard Company in 2015, returned around $3 billion in fiscal 2017 and $3.1 billion in fiscal 2016 to shareholders.

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During the first quarter of last year, the company unveiled a $7 billion share buyback program, which is expected to be completed by fiscal 2019. As part of the share buyback program, the company has rewarded $1 billion to its shareholders through the repurchase of $814 million worth of shares during the first quarter. HPE now expects to return $1.9 billion to stockholders through buybacks in the remaining part of fiscal 2019.

Dividends

The company announced a quarterly dividend hike of 50% in Q3 2018. In fiscal 2018, HPE paid a dividend of $0.4875 per share, higher than $0.2600 per share in the year-ago period.

Hewlett Packard spent $157 million to pay a cash dividend of $0.1125 per share in the first quarter. HPE has a dividend yield of 2.76% as of February 22, 2019, and an annualized payout of $0.45, indicating a payout ratio of 29.2%. In comparison, the dividend yields of Juniper (JNPR), NetApp (NTAP), and Cisco (CSCO) stand at 2.75%, 2.42%, and 2.79%, respectively.

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