Hewlett-Packard is joining the list of large U.S. companies who have either raised or initiated their dividends, announcing a 10% increase in its quarterly payout late last week. Management said the change will not go into effect for the company’s May payment, but will impact the distribution in August. May’s dividend will be $0.12 per share, implying a $0.132 per share payout later this summer, representing an annual yield of roughly 2.23%.
The payout may help appease existing investors or attract new ones after H-P’s stock has declined by over 40% in the past 12 months. Many lost confidence in the company in 2011 following several poor quarters and former CEO Leo Apotheker’s decision to purchase UK software company Autonomy and spin-off HP’s PC division. He was replaced by former eBay (EBAY) boss Meg Whitman later in 2011 who has since scrapped the spin-off plan and instead integrated H-P’s PC and printer division in hopes of increased supply chain efficiency and an improvement in packaged sales.
Hewlett-Packard (HPQ : NYSE : US$23.89), Net Change: 0.26, % Change: 1.10%, Volume: 23,848,508