Analysts expect the company to report quarterly earnings at 58 cents per share — the same as last year’s Q4. The consensus estimate for Hewlett Packard Enterprise's quarterly revenue is $9.91 billion ($8.46 billion last year), according to Benzinga Pro.
In the meantime, investors may be eyeing potential dividend gains from the company. Currently, Hewlett Packard has an annual dividend yield of 2.34%. That’s a quarterly dividend amount of 13 cents per share (52 cents a year).
To figure out how to earn $500 monthly from Hewlett Packard, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by HPE's $0.52 dividend: $6,000 / $0.52 = 11,538 shares.
So, an investor would need to own approximately $256,836 worth of Hewlett Packard Enterprise, or 11,538 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.52 = 2,308 shares, or $51,376 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
HPE Price Action: Shares of Hewlett Packard Enterprise rose by 1.6% to close at $22.26 on Wednesday.
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