This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Shareholder Yield Stocks to Beat the S&P


There's an interesting story in shares of technology giant Hewlett-Packard (HPQ - Get Report). This $57 billion computer company has caught considerable attention in the last couple of years for its biggest missteps, including the $11 billion acquisition of Autonomy, which destroyed considerable shareholder value. But investors have been ignoring the leaps and bounds H-P has made in the years since.

>>5 Tech Stocks to Trade for Gains

They've also been ignoring the hefty 13.33% shareholder yield shares have returned in the last year.

Hewlett-Packard is best known for its printer and PC businesses, units that generate around half of overall sales. The problem is that PCs are commoditized these days -- they've become a volume product, not a margin product. And that shift means that Hewlett-Packard has had to change its business materially in recent years. The firm has done an admirable job of moving more revenues to services, hardware and software for enterprise customers. Likewise, printers still provide attractive consumables sales -- printer ink is liquid gold to H-P.

Hewlett-Packard's real problem in recent years has been too much money. The firm entered 2010 with more than $13 billion in cash on its balance sheet, and the need to distance itself from the PC business. That's why management went on an ill-fated buying spree. But more recently, a combination of dividend payouts, share buybacks, and debt extinguishment has helped put $7.53 billion in investors' pockets.

That's a much better use of capital -- and it points to upside in H-P, particularly given its dirt-cheap valuation at current prices.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ATVI $23.02 1.14%
BBBY $76.43 1.29%
DE $88.61 1.31%
GPS $43.13 0.68%
HPQ $31.57 0.25%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs