April 20, 2025 a 03:31 pm
HPQ: Dividend Analysis - HP Inc.
HP Inc. demonstrates a solid dividend payment history with an impressive yield, underscoring its commitment to returning value to shareholders. The consistent dividend growth over the years highlights the company's stability and reliability in dividend issuance. Strategic financial management further enhances HP's attractiveness as a dividend-paying stock.
📊 Overview
HP Inc. operates within the technology sector, which is not traditionally known for high dividend yields. Nonetheless, HP's dividend yield stands at a competitive 3.97%, indicating a strong return for investors focusing on income. The company's ability to sustain dividends for 56 years reflects formidable stability. The absence of recent dividend cuts further cements investor confidence.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 3.97% |
| Current Dividend per Share | 1.10 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
HP Inc. has maintained a robust dividend history, showcasing resilience and financial health. This track record is critical for investors who prioritize reliable income streams. A strong history of dividends can indicate a company's stability and profitability, important metrics in investor decision-making.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.29 |
| 2024 | 1.12 |
| 2023 | 1.06 |
| 2022 | 1.01 |
| 2021 | 0.83 |
📈 Dividend Growth
HP Inc.'s dividend growth trends over 3 and 5 years indicate a moderate increase in shareholder returns. Continuity in growth reflects management's forward-looking strategies in maintaining competitive shareholder returns and strengthening investor confidence.
| Time | Growth |
|---|---|
| 3 years | 10.32% |
| 5 years | 11.19% |
The average dividend growth is 11.19% over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
The payout ratios indicate HP Inc.'s efficiency in distributing earnings and free cash flow to dividends, a crucial aspect for income-oriented investors. A balanced payout ratio provides insight into the company's sustainability in continuing dividend payments while retaining capital for growth.
| Key figure ratio | Value |
|---|---|
| EPS-based | 38.30% |
| Free cash flow-based | 31.69% |
The EPS payout ratio of 38.30% and FCF payout ratio of 31.69% reflect a healthy approach by HP Inc., facilitating reinvestment potential while rewarding its shareholders.
📉 Cashflow & Capital Efficiency
HP Inc.'s cash flow stability and capital efficiency are indicators of its operational effectiveness and financial discipline. These metrics help investors assess the company's ability to generate free cash flow and invest in long-term projects.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 10.78% | 11.34% | 12.81% |
| Earnings Yield | 7.98% | 12.49% | 10.92% |
| CAPEX to Operating Cash Flow | 0 | 17.05% | 17.72% |
| Stock-based Compensation to Revenue | 0.84% | 0.82% | 0.54% |
| Free Cash Flow / Operating Cash Flow Ratio | 1.00 | 0.83 | 0.82 |
HP Inc.'s efficient cash flow management allows for strategic reinvestment, underscoring both its resilience and potential for growth.
💼 Balance Sheet & Leverage Analysis
Analyzing HP Inc.'s balance sheet reveals insights into the company's leverage and ability to meet financial obligations. Metrics like debt-to-equity and current ratios are crucial for understanding financial health and liquidity.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.68 | -10.04 | -3.77 |
| Debt-to-Assets | 27.31% | 29.02% | 28.54% |
| Debt-to-Capital | 78.65% | 111.05% | 136.04% |
| Net Debt to EBITDA | 1.74 | 1.68 | 1.44 |
| Current Ratio | 0.72 | 0.73 | 0.76 |
| Quick Ratio | 0.45 | 0.45 | 0.47 |
| Financial Leverage | 13.49 | -34.62 | -13.22 |
HP Inc.'s debt metrics present mixed signals, warranting caution. The company's quick ratio suggests limited immediate liquidity, while the high debt-to-equity in certain years reflects heightened leverage risks.
🔍 Fundamental Strength & Profitability
Evaluating HP Inc.'s fundamental strength involves examining profitability metrics like ROI and margins, which are vital in gauging the company's operational success and competitiveness.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.94% | -3.05% | -1.07% |
| Return on Assets | 6.95% | 8.82% | 8.12% |
| Margins: Net | 5.18% | 6.07% | 4.97% |
| Margins: EBIT | 7.26% | 6.74% | 7.44% |
| Margins: EBITDA | 8.81% | 8.31% | 8.66% |
| Margins: Gross | 22.07% | 21.42% | 19.58% |
| Research & Development to Revenue | 3.06% | 2.94% | 2.53% |
HP Inc.'s operational margins highlight effective cost management, and the consistent R&D investment suggests strategic prioritization for future growth and competitiveness.
🏷️ Price Development
✅ Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 31/40
🏅 Rating
HP Inc. presents itself as a stable choice for dividend-focused investors, showing strong historical performance, reliable dividend continuity, and moderate financial strength. The compelling dividend score suggests that HP Inc. is a viable option for those seeking steady income with reasonable growth potential.