May 18, 2026 a 02:46 am
HPE: Dividend Analysis - Hewlett Packard Enterprise Company
Hewlett Packard Enterprise Company (HPE) demonstrates a moderate dividend yield with consistent payouts over the past years. An analysis of its payout ratios reveals sustainability, alongside a promising dividend growth rate. However, challenges in capital efficiency suggest caution. HPE appears to be a steady choice for dividend investors prioritizing yield continuity.
📊 Overview
Hewlett Packard Enterprise Company, operating in the technology sector, showcases a firm stance in dividend disbursements with a substantial history of 12 years. Its dividend yield stands at 2.28%, suggesting an attractive return for investors. Despite facing occasional financial hurdles, the company has remained resilient in maintaining its dividend payments.
| Attribute | Details |
|---|---|
| Sector | Technology |
| Dividend yield | 2.28% |
| Current dividend per share | 0.601 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
📈 Dividend History
The consistent dividend payouts reflect HPE’s commitment to returning value to shareholders. Over the past 12 years, its reliability as a dividend payer underscores a robust financial strategy, important for long-term investors focusing on income stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.1425 |
| 2025 | 0.5325 |
| 2024 | 0.52 |
| 2023 | 0.49 |
| 2022 | 0.48 |
📉 Dividend Growth
Understanding dividend growth is vital for evaluating the potential for increasing investment return over time. HPE's dividend growth over both three and five-year periods indicates a steady, though modest, improvement, essential for potential capital appreciation and hedge against inflation.
| Time | Growth |
|---|---|
| 3 years | 3.52% |
| 5 years | 2.10% |
The average dividend growth is 2.10% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a crucial indicator of dividend sustainability. HPE's EPS-based payout ratio is alarmingly negative, likely due to non-recurring financials. However, the cash flow-based payout ratio of 20.96% suggests dividends are covered by actual cash flow, offering reassurance about immediate sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | -514.11% |
| Free cash flow-based | 20.96% |
The striking disparity between EPS and FCF-based ratios highlights a reliance on cash flow for dividend payments, which is a safer approach than profits in HPE's case.
💰 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency provides insight into how effectively HPE is generating and utilizing cash. Despite moderate free cash flow and earnings yields, constraints in CAPEX relative to operating cash flow suggest cautious capital investments.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 1.94% | 7.73% | 8.01% |
| Earnings Yield | 0.18% | 10.11% | 10.14% |
| CAPEX to Operating Cash Flow | 78.52% | 54.53% | 63.87% |
| Stock-based Compensation to Revenue | 1.97% | 1.43% | 1.47% |
| Free Cash Flow / Operating Cash Flow Ratio | 21.48% | 45.47% | 36.13% |
The analysis indicates a stable free cash flow situation with efficient capital management, but with room for improvement in CAPEX utilization efficiency.
🗣️ Balance Sheet & Leverage Analysis
Examining the balance sheet and leverage ratios helps assess HPE's financial robustness. While the debt-to-equity ratio suggests moderate leverage, the quick and current ratios offer insights into liquidity management capabilities.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.91 | 0.80 | 0.64 |
| Debt-to-Assets | 0.29 | 0.28 | 0.24 |
| Debt-to-Capital | 0.48 | 0.44 | 0.39 |
| Net Debt to EBITDA | 6.32 | 0.89 | 1.91 |
| Current Ratio | 1.01 | 1.29 | 0.87 |
| Quick Ratio | 0.76 | 0.99 | 0.66 |
| Financial Leverage | 3.07 | 2.87 | 2.70 |
HPE maintains a well-managed leverage, offering resilience in volatile markets, although pressure on liquidity is evident.
🛠️ Fundamental Strength & Profitability
Fundamental strength and profitability metrics evaluate HPE's operational success. Margins and returns showcase profitability potential, while R&D investments reflect future growth prospects.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 0.23% | 10.39% | 9.56% |
| Return on Assets | 0.08% | 3.62% | 3.54% |
| Margins: Net | 0.17% | 8.58% | 6.96% |
| Margins: EBIT | -0.32% | 9.97% | 7.66% |
| Margins: EBITDA | 7.66% | 18.50% | 16.65% |
| Margins: Gross | 28.77% | 31.77% | 34.09% |
| Research & Development to Revenue | 7.79% | 7.47% | 8.07% |
Across profitability metrics, HPE illustrates sound operational management. The focus on research paves the way for innovation-led growth.
✨ Price Development
✅ Dividend Scoring System
| Criteria | Score | Indicator |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 26/40
🔍 Rating
Hewlett Packard Enterprise Company presents a compelling case for dividend-focused investors, with a solid history and reliable dividends. While there are concerns regarding capital efficiency, the overall financial health suggests sustainable dividends in the near term, making HPE a viable investment for income-seeking portfolios.
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