August 03, 2025 a 03:31 pm

HPE: Dividend Analysis - Hewlett Packard Enterprise Company

Overview 📊

The following table provides an overview of the key dividend metrics for Hewlett Packard Enterprise:

Metric	Value
Sector	Technology
Dividend yield	2.92%
Current dividend per share	0.516 USD
Dividend history	11 years
Last cut or suspension	None

Dividend History 🗣️

Understanding the history of dividends provides insights into the company's commitment to returning value to shareholders. Here's how Hewlett Packard Enterprise has performed:

Year	Dividend per share (USD)
2025	0.26
2024	0.52
2023	0.49
2022	0.48
2021	0.48

Dividend Growth 📈

Dividend growth signals the company's financial health and commitment to increasing shareholder returns. Here's a look at its growth trajectory:

Time	Growth
3 years	2.70%
5 years	2.59%

The average dividend growth is 2.59% over 5 years. This shows moderate but steady dividend growth.

Payout Ratio 🔄

The payout ratios are essential for assessing the sustainability of dividends. An analysis of these ratios helps in understanding the company's ability to maintain its dividend payouts:

Key Figure	Ratio
EPS-based	47.88%
Free cash flow-based	633.33%

With an EPS payout of 47.88%, HPE maintains a balanced approach to profitability and shareholder returns. However, a high FCF ratio indicates potential cash flow constraints.

Cashflow & Capital Efficiency 🏦

Assessing cash flow metrics is crucial in evaluating a company's financial flexibility and capital efficiency:

Year	2024	2023	2022
Free Cash Flow Yield	7.74%	8.01%	7.91%
Earnings Yield	10.11%	10.14%	4.67%
CAPEX/Operating Cash Flow	54.53%	63.87%	67.97%
Stock-based Compensation/Revenue	1.43%	1.47%	1.37%
Free Cash Flow/Operating Cash Flow	45.47%	36.13%	32.03%

HPE shows reliable cash flow generation and efficient capital allocation, with a focus on maintaining robust operations despite high cash flow payout ratios.

Balance Sheet & Leverage Analysis 📉

Analysis of leverage and liquidity ratios provides a comprehensive view of a company's financial risk and stability:

Year	2024	2023	2022
Debt-to-Equity Ratio	0.74	0.64	0.63
Debt-to-Assets Ratio	0.26	0.24	0.22
Debt-to-Capital Ratio	0.42	0.39	0.39
Net Debt to EBITDA	0.68	1.83	1.74
Current Ratio	1.29	0.87	0.88
Quick Ratio	0.99	0.66	0.66
Financial Leverage	2.87	2.70	2.88

Despite moderate leverage, HPE's strong interest coverage hints at sufficient liquidity to manage its obligations.

Fundamental Strength & Profitability ✅

These metrics provide insights into a company's operational efficiency and profitability:

Year	2024	2023	2022
Return on Equity	10.39%	9.56%	4.37%
Return on Assets	3.62%	3.54%	1.52%
Net Margin	8.56%	6.95%	3.05%
EBIT Margin	8.28%	8.38%	7.82%
Gross Margin	32.68%	35.14%	33.36%
R&D/Revenue	7.46%	8.06%	7.18%

HPE’s solid return metrics reflect effective management and operational efficiency, further validated by competitive margins across key areas.

Price Development 📈

Dividend Scoring System 📊

Category	Score (1-5)
Dividend Yield	4
Dividend Stability	5
Dividend Growth	3
Payout Ratio	2
Financial Stability	3
Dividend Continuity	5
Cashflow Coverage	3
Balance Sheet Quality	4

Rating 🏆

Hewlett Packard Enterprise demonstrates a solid dividend profile with a strong history of stability. While payout ratios, particularly FCF-based, may warrant attention, its operational efficiency and robust financial metrics support the company's reputation as a reliable dividend payer. Overall, HPE is a sound investment for dividend-conscious investors, providing both stability and modest growth potential.