Hewlett-Packard to Buy Back Further $10 Billion of Stock to Boost Shares
Hewlett-Packard Co. (HPQ), the world’s largest computer maker, plans to buy back $10 billion of its stock, part of an effort to buoy its languishing shares.
The plan comes in addition to the an earlier buyback plan announced last year, Palo Alto, California-based Hewlett-Packard said today in a regulatory filing.
The company’s board also declared a regular cash dividend of 12 cents a share. The dividend, the fourth of the company’s fiscal year, will be payable on Oct. 5 to shareholders of record as of Sept. 14, the company said in a separate statement.
Hewlett-Packard Chief Executive Officer Leo Apotheker is looking for ways to boost shareholder returns amid a flagging stock price. The shares, down 14 percent this year, rose 95 cents, or 2.7, percent to $36.23 today in New York Stock Exchange trading. The stock is down 22 percent since Aug. 6, when former CEO Mark Hurd resigned.
The moves today are in addition to the earlier stock repurchase plan. As of April 30, the company had about $5.9 billion of repurchase authorizations available under that $10 billion program approved in August.
To contact the editor responsible for the story: Tom Giles at firstname.lastname@example.org