Five Companies That Have to Raise Dividends
Hewlett-Packard Co. (NYSE: HPQ) may be the most unloved large company trading on any U.S. exchange. CEO Meg Whitman recently said she expects several quarters of falling revenue, which helped push shares to a multiyear low just above $14. HP's problems used to be seen through the lenses of its management turmoil, which included a parade of CEOs and board members. But current trouble is much greater than that, and begins with the PC industry, of which HP was the global market share leader for some time. Chinese manufacturer Lenovo just took over that spot. In its most recently reported quarter, HP revenue fell 5% to $29.7 billion. The GAAP EPS loss was $4.49, compared to a profit of $0.93 in the same quarter a year ago. HP's recent 3.6% yield will not do.
Douglas A. McIntyre