The purpose of our “In Focus” reports is to study the highest paying dividend stocks in detail to determine if they are also the best dividend paying stocks. In this issue, we feature HP Incorporated.
HP Incorporated (HP) was formerly the Hewlett-Packard Company. HP is a provider of products, technologies, software, solutions and services to individuals, small enterprises, and large enterprises.
In many ways HP has performed admirably over the previous seven to eight years. Unlike many firms during and just after the Great Recession, HP did not cut its dividend; in fact it has increased it fairly consistently.
And it is in a position to do it again. Its Dividend/CFOp ratio is very low. Furthermore, though HP has very high liabilities, most of these are current liabilities that are more than offset by current assets. HP is not burdened with excessive debts relative to its historical average.
On top of all this, HP appears fairly modestly priced. Its stock price relative to sales and earnings is on the low side.
Unfortunately, there is a reason for this. HP’s growth outlook, in our opinion, is definitely on the low side. HP is a very mature firm with little growth potential. Overall, we do not consider it one of the best monthly dividend stocks we cover.
Stat Sheet – HP Incorporated 4/14/16
|Market Cap||$ 22,653|
|Growth Prospects||Below Average|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
If you would like to see the highest paying dividend stocks that we do consider the best dividend paying stocks we cover, click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.