June 07, 2026 a 11:31 am
HPQ: Dividend Analysis - HP Inc.
HP Inc. demonstrates a robust dividend profile with a current dividend yield of 4.65%. Over the past five years, it has shown a steady dividend growth rate of approximately 10%. With more than half a century of continuous dividend payments, HP Inc. exhibits resilience and commitment to returning value to shareholders. The payout ratios indicate a healthy balance between retaining sufficient earnings for operations and rewarding shareholders.
📊 Overview
The following table summarizes the key dividend metrics for HP Inc., highlighting its sector and recent dividend-related figures.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 4.65 % |
| Current Dividend per Share | 1.15 USD |
| Dividend History | 57 years |
| Last Cut or Suspension | None |
📈 Dividend History
With a dividend-paying history spanning 57 years, HP Inc. showcases reliability and dedication to its shareholders. Regular dividend payments can attract income-focused investors, providing a stable income stream.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.6 |
| 2025 | 1.1682 |
| 2024 | 1.1162 |
| 2023 | 1.0631 |
| 2022 | 1.0125 |
📈 Dividend Growth
The growth in dividends is a crucial measure of a company's ability to increase shareholder returns over time. HP Inc. has managed a 3-year growth rate of 4.9% and a steady 5-year growth rate of 10.1%. Such growth suggests strong financial health and future potential.
| Time | Growth |
|---|---|
| 3 years | 4.88 % |
| 5 years | 10.09 % |
The average dividend growth is 10.1% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Payout ratios are indicative of how much of its earnings a company is paying out as dividends. HP Inc. maintains a comfortable EPS-based payout ratio of 41.54%, showcasing ample earnings retention for growth while rewarding shareholders. The Free Cash Flow-based payout ratio stands at 27.83%, reinforcing cash sufficiency.
| Key Figure | Ratio |
|---|---|
| EPS-based | 41.54 % |
| Free Cash Flow-based | 27.83 % |
💸 Cashflow & Capital Efficiency
Understanding cash flow generation and its efficiency in capital usage is crucial for evaluating a firm's operational performance and sustainability.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 10.70 % | 9.08 % | 11.34 % |
| Earnings Yield | 9.66 % | 7.98 % | 12.49 % |
| CAPEX to Operating Cash Flow | 24.26 % | 15.79 % | 17.05 % |
| Stock-based Compensation to Revenue | 0.94 % | 0.84 % | 0.82 % |
| Free Cash Flow / Operating Cash Flow Ratio | 75.74 % | 84.21 % | 82.95 % |
HP Inc. demonstrates strong cash flow stability with efficient capital deployment, sustaining long-term growth potential.
🛠️ Balance Sheet & Leverage Analysis
An evaluation of the balance sheet provides insights into financial solvency and risk management through leverage ratios.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | -31.45 | -8.24 | -10.05 |
| Debt-to-Assets | 26.05 % | 27.31 % | 29.02 % |
| Debt-to-Capital | 103.28 % | 113.82 % | 111.05 % |
| Net Debt to EBITDA | 1.76 | 1.62 | 1.71 |
| Current Ratio | 0.77 | 0.72 | 0.73 |
| Quick Ratio | 0.48 | 0.45 | 0.45 |
| Financial Leverage | -120.72 | -30.17 | -34.62 |
The high leverage ratio indicates potential volatility, yet HP Inc. maintains adequate liquidity to manage its obligations.
📈 Fundamental Strength & Profitability
HP Inc.'s profitability metrics are essential for assessing its efficiency and capability to generate returns on investments.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -7.31 % | -2.10 % | -3.05 % |
| Return on Assets | 6.05 % | 6.95 % | 8.82 % |
| Margins: Net | 4.57 % | 5.18 % | 6.07 % |
| Margins: EBIT | 5.74 % | 7.26 % | 6.74 % |
| Margins: EBITDA | 7.40 % | 8.81 % | 8.32 % |
| Margins: Gross | 19.98 % | 22.07 % | 21.42 % |
| Research & Development to Revenue | 2.90 % | 3.06 % | 2.94 % |
Despite some negative equity returns, the firm shows a strong gross margin, indicating efficient production processes.
🚀 Price Development
📊 Dividend Scoring System
| Criteria | Score | Description |
|---|---|---|
| Dividend Yield | 5 | Substantial |
| Dividend Stability | 4 | Reliable |
| Dividend Growth | 4 | Moderate |
| Payout Ratio | 4 | Healthy |
| Financial Stability | 3 | Satisfactory |
| Dividend Continuity | 5 | Continuous |
| Cashflow Coverage | 5 | Robust |
| Balance Sheet Quality | 3 | Adequate |
Total Score: 33/40
✅ Rating
Overall, HP Inc. presents a strong dividend profile supported by significant history and stability. Despite some leverage concerns, its ability to sustain and grow dividends makes it an attractive proposition for income-oriented investors. The stock is recommended for those seeking a balanced addition to their portfolio, emphasizing income and moderate growth.
Smart Data Insight
Master the Perfect Entry & Exit for this Stock
Don't leave your profits to chance. Historically, this stock follows specific seasonal patterns that institutional traders use to maximize returns.
- ✅ Identify the "Golden Buying Window"
- ✅ Avoid high-risk correction cycles
- ✅ Backtested data from the last 20+ years