Does HP's (HPQ) Shareholder Payout Emphasize Value or Highlight Capital Allocation Challenges?

• HP Inc. recently announced a quarterly cash dividend of $0.2894 per share, payable on October 1, 2025, to stockholders of record as of September 10, and disclosed that it returned approximately US$400 million to shareholders during its fiscal second quarter through dividends and share repurchases.
• A key insight is that HP’s capital returns highlight management’s commitment to shareholder value amidst relatively flat sales and ongoing business reinvestment.
• We’ll explore how HP’s focus on capital returns, especially through share repurchases and dividends, could influence its future investment outlook.

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HP Investment Narrative Recap

Owning HP stock today requires confidence in the company's ability to generate value for shareholders even as its core PC and print markets remain challenged and sales growth is limited. The recent announcement of another quarterly dividend and continued repurchases is a clear signal of management’s intent to maintain capital returns, but it does not fundamentally change the main short term catalyst, HP’s execution on artificial intelligence and “Future of Work” initiatives, or the biggest current risk, which remains margin pressure from ongoing market and supply chain challenges.

Among recent developments, HP’s declared Q2 2025 dividend of US$0.2894 per share and US$100 million spent on share buybacks are directly aligned with the latest news, reinforcing the company’s steady approach to rewarding shareholders. While these actions support income-focused investors, they do not materially shift the outlook for revenue growth or address underlying risks tied to ongoing margin pressures.

Yet, while capital returns remain stable, investors should also be aware that HP’s exposure to higher commodity costs could pose challenges if...

Read the full narrative on HP (it's free!)

HP's outlook sees revenues reaching $56.4 billion and earnings of $3.0 billion by 2028. This is based on an expected annual revenue growth rate of 1.3% and a $0.5 billion increase in earnings from the current $2.5 billion level.

Uncover how HP's forecasts yield a $27.21 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community have published fair value estimates for HP ranging from US$14.68 to an outlier of US$11,139.11. With this diversity in forecasts, consider how persistent cost pressures could further influence future profitability and shareholder returns, then explore a variety of viewpoints to inform your own perspective.

Explore 8 other fair value estimates on HP - why the stock might be a potential multi-bagger!

Build Your Own HP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HP research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free HP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HP's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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