HP dividend: payout, cash cover and yield
MyStockButler's October 2026 analysis: HP pays $1.20 in 2027, $1.24 in 2028 and $1.28 in 2029; fiscal 2025 free cash flow covered dividends by about 2.6 times.
How much does HP pay per share?
Base dividends rise to $1.20 in 2027 and $1.24 in 2028, reaching $1.28 in 2029. The bear case holds at $1.16 throughout. The bull path reaches $1.24 in 2027 and $1.34 in 2028, then $1.44. The base is below recent increases because cash must also fund debt and investment; FY2025 free cash flow covered dividends by about 2.6 times.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 2.94 | 3.19 | 2.98 | 3.52 | 4.78 |
| − Dividends paid, per share | 1.14 | 1.09 | 1.04 | 0.99 | 0.77 |
| − Share buybacks, per share | 0.89 | 2.12 | 0.10 | 4.09 | 5.12 |
| = FCF not paid out, per share | 0.90 | 1.84 |
What this means. The company's own free cash flow per share is higher because it adds back money spent buying equipment through financing leases, while our count treats that money as cash spent.
How much would HP's dividend pay you?
$10,000 invested in HP at its 3.8% dividend yield (our report of October 21, 2026) pays $380.00 in the first year, before tax. If its dividend per share keeps changing 10.3% a year, as it did from Oct 2021 to Oct 2025, and the dividends are reinvested, year 10 pays $1,525.86, with $8,133.23 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is HP’s dividend covered by its cash?
Stock compensation requires a further economic adjustment. HP adds the expense back because no cash leaves immediately, but employees receive shares that dilute existing owners or require repurchases. Subtracting fiscal 2025 stock compensation of $522 million leaves real free cash flow of $2,278 million, or 4.1% of revenue. HP’s own count was $2,931 million because it makes a different lease adjustment.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,800 | 3,157 | 2,978 | 3,698 | 5,827 |
| − Dividends paid | 1,088 | 1,075 | 1,037 | 1,037 | 938 |
| − Share buybacks | 850 | 2,100 | 100 | 4,297 | 6,249 |
| = Free cash flow not paid out | 862 | 1,841 | |||
| Paid out, % of free cash flow | 69.2% | 100.6% | 38.2% | 144.2% | 123.3% |
What this means. The company's own net debt is slightly different because it rounds the number and includes some restricted cash and debt adjustments that our calculation leaves out.
What could change HP’s dividend?
HP’s August 26, 2026 guidance calls for fiscal 2026 non-GAAP diluted EPS of $3.19–$3.29. It forecasts free cash flow of $3.0–$3.2 billion, with estimated tariff refunds contributing $0.19 per share to the EPS outlook. Case probabilities are bear 30%, base 52% and bull 18%.
The October-quarter report, provisionally expected November 24, 2026, will test whether PC units, pricing and margins improve together as component costs rise. Through fiscal 2028, workforce reductions must deliver about $1 billion of annual gross savings without weakening service or execution. The bear case is persistent unit decline, PC margin pressure and supplies erosion. The bull case needs profitable AI PCs, computers designed to run artificial intelligence features, resilient print cash flow and debt reduction.
What is HP’s dividend yield today?
The 3.8% dividend yield appears to consume roughly 38% of free cash flow, leaving room for buybacks or debt repayment only if that cash remains durable. The table gathers today’s price, valuation measures, cash-flow yields, and dividend yield.
| Today (Oct 21, 2026) | |
|---|---|
| Share price | 31.21 |
| Free cash flow yield (calculated) | 9.9% |
| Real free cash flow yield (calculated) | 8.1% |
| Dividend yield (calculated) | 3.8% |
What this means. The price-to-book measure is not meaningful because the company owes more than it owns on its balance sheet.