The Wall Street Journal: Hewlett Packard Enterprise raises dividend, will return $2.5 billion to shareholders

Hewlett Packard Enterprise Co. approved $5 billion more to buy back stock as part of a pledge to return most of its cash to shareholders and gave a mixed view for 2018.

The board also approved a 15% increase in the quarterly dividend to 75 cents a share. As of July 31, the company had $1.4 billion left under a previous authorization, according to securities filings.

Speaking at the company’s annual meeting with securities analysts in San Francisco, company officials said Wednesday they expect the business technology giant to make 43 cents to 53 cents in profit during the business year that ends October 2018, or $1.15 to $1.25 on an adjusted basis, with modest revenue growth when adjusted for sales to tier-1 service providers. Analysts surveyed by Thomson Reuters had expected profit of 65 cents a share, or $1.19 when adjusted.

Meanwhile, company officials said they would return to shareholders about $2.5 billion, including $2 billion in share buybacks.

An expanded version of this report appears on WSJ.com.

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