Hewlett-Packard Raised Dividend by 10%

by Christopher Freeburn | March 21, 2013 11:14 am

Hewlett-Packard Raised Dividend by 10%

Hewlett Packard building Tunisia630 300x153 Hewlett Packard Raised Dividend by 10%[1]Computer equipment giant Hewlett-Packard (NYSE:HPQ[2]) is giving shareholders a gift[3].

The company announced on Thursday that it will increase its quarterly dividend by 10%. The followed the re-election of HP’s current board of directors by a very narrow margin on Wednesday. Reuters noted.

Shareholders have been incensed over losses stemming from HP’s disastrous 2011 acquisition of British software maker Autonomy. The company subsequently wrote down the value of Autonomy[4], for which it paid $11 billion, by $8.8 billion, and accused Autonomy of misleading accounting practices.

Both the U.S. Justice Department and FBI are said to be investigating financial reporting irregularities related to the Autonomy acquisition[5].

The dividend increase becomes effective in May.

Shares of Hewlett-Packard in Thursday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Hewlett_Packard_building_Tunisia630.jpg
  2. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  3. is giving shareholders a gift: http://www.reuters.com/article/2013/03/21/us-hewlettpackard-dividend-idUSBRE92K0HL20130321
  4. subsequently wrote down the value of Autonomy: http://investorplace.com/2012/11/hpq-and-bernanketake-market-down-tuesdays-ip-market-recap-hpq-kkd-gmcr-bby-v/
  5. financial reporting irregularities related to the Autonomy acquisition: http://investorplace.com/2012/12/hewlett-packard-ends-the-year-with-justice-department-probe/

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