Hewlett-Packard hikes dividend, outlines strategy

Mar 15, 2011

(AP) -- Hewlett-Packard Co. said Monday it plans to raise its dividend for the first time in over a decade and one day soon sell "cloud computing" services to the public.

The changes are part of CEO Leo Apotheker's efforts to chart a new course for the world's biggest technology by revenue. Apotheker took over at HP four months ago after his predecessor, Mark Hurd, was ousted in a sexual harassment scandal.

Apotheker's presentation Monday at a conference for industry analysts and reporters marked the first time he has publicly outlined his strategy for HP since taking the job.

He offered few details. The "public cloud" was one of the few new revelations.

When it launches, it will put HP in competition with Amazon.com and other companies that have piled on to one of technology's hottest trends: selling services over the Internet. Such services allow people to rent space on servers they don't own, to run websites, for example.

Selling technology for building cloud services emerged as a cornerstone of Apotheker's plans for tying together HP's disparate resources. HP is a technology conglomerate. It's the biggest maker of personal computers and printers, and also sells servers and mobile phones and computer-networking equipment and technology services.

In focusing on the cloud, HP is positioning itself as the trusted intermediary to link those technologies.

The dividend hike is an attempt to win over Wall Street.

The dividend has been 8 cents per share since 1998. It will rise to 12 cents per share the next time the board of directors declares a dividend, which should be in May, said HP's , Cathie Lesjak.

HP plans on increasing the by a double-digit percentage every year, Lesjak said.

She also set a target of earnings of at least $7 per share, excluding items, by 2014. The company earned $4.58 per share, on that same basis, in the latest fiscal year.

Apotheker has been active behind the scenes. In an early attempt to win over HP's approximately 300,000 employees, one of his first acts as CEO was to reverse pay cuts imposed by Hurd. Shortly after he and a new chairman were hired, HP replaced a third of its board of directors, an unusually severe boardroom purging that targeted individuals who were particularly vocal in the negotiations over Hurd's ouster, both for and against the decision.

HP shares rose 21 cents, or .5 percent, to $41.70 in extended trading.

Explore further: Record labels sue Pandora over older songs

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Apotheker a no-show in Oracle-SAP trial

Nov 19, 2010

(AP) -- An industrial espionage trial between Oracle Corp. and SAP AG, two of the world's biggest business software makers, didn't feature after all the testimony of one of its most anticipated witnesses.

HP looks to the 'cloud'

Mar 14, 2011

Hewlett-Packard plans to offer a complete range of cloud computing services, HP chief executive Leo Apotheker said Monday as he outlined his strategy for the US computer giant.

HP's 3Q numbers solid but could fuel doubts

Aug 19, 2010

(AP) -- Now that Mark Hurd is out as CEO of Hewlett-Packard Co., the world's biggest technology company is trying to prove to Wall Street that it can thrive under the sweeping changes he set in motion.

HP stock slides on trimmed earnings forecast

Feb 22, 2011

US computer colossus Hewlett-Packard saw its stock price tumble on Tuesday on a trimmed earnings forecast that triggered fears the economic downturn will continue to weigh on the firm.

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

19 hours ago

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

20 hours ago

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

20 hours ago

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

User comments : 0

More news stories

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Better thermal-imaging lens from waste sulfur

Sulfur left over from refining fossil fuels can be transformed into cheap, lightweight, plastic lenses for infrared devices, including night-vision goggles, a University of Arizona-led international team ...

Deadly human pathogen Cryptococcus fully sequenced

Within each strand of DNA lies the blueprint for building an organism, along with the keys to its evolution and survival. These genetic instructions can give valuable insight into why pathogens like Cryptococcus ne ...