The HP board of directors has declared a regular cash dividend of $0.16 per share on the company’s common stock.
The dividend, the second in HP’s fiscal year 2015, is payable on April 1, 2015, to stockholders of record as of the close of business on March 11, 2015.
HP has approximately 1.8 billion shares of common stock outstanding.
One comprising its enterprise technology infrastructure, software and services businesses, which will do business as Hewlett-Packard Enterprise, and one that will comprise its personal systems and printing businesses, which will do business as HP Inc. and retain the current logo.
Immediately following the transaction, HP shareholders would own shares of both Hewlett-Packard Enterprise and HP Inc.
The separation transaction is intended to be tax-free to HP shareholders for federal income tax purposes.
The transaction is currently targeted to be completed by the end of fiscal 2015, subject to certain conditions, including, among others, obtaining final approval from the HP Board of Directors, receipt of a favorable opinion and/or rulings with respect to the tax-free nature of the transaction for federal income tax purposes and the effectiveness of a Form 10 filing with the Securities and Exchange Commission (SEC).
The announcement came as HP approached the fourth year of its five-year turnaround plan.
“Our work during the past three years has significantly strengthened our core businesses to the point where we can more aggressively go after the opportunities created by a rapidly changing market,” said Meg Whitman, chairman, president and CEO, HP. “The decision to separate into two market-leading companies underscores our commitment to the turnaround plan. It will provide each new company with the independence, focus, financial resources, and flexibility they need to adapt quickly to market and customer dynamics, while generating long-term value for shareholders. In short, by transitioning now from one HP to two new companies, created out of our successful turnaround efforts, we will be in an even better position to compete in the market, support our customers and partners, and deliver maximum value to our shareholders.”
Write to us firstname.lastname@example.org