A Look at HPE’s Capital Return Policy



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.


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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