HP Hikes Dividend by 10 Percent

By mifa kim | March 24 2012 9:29 AM

(Reuters) - Hewlett Packard raised its quarterly dividend by 10 percent, making good on a pledge to shareholders even as it struggles to stabilize its operations and grow its revenue.

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A woman walks past the Hewlett Packard logo at its French headquarters in Issy le Moulineaux, western Paris, in this September 16, 2005 file photograph. Shares of Hewlett-Packard slumped by more than 20 percent to a six-year low on August 19,2011 as investors wiped about $16 billion off the market value of the world's biggest PC maker in a resounding rejection of its plan for a major shake-up.

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HP has said it intended to increase its regular dividend annually, and that the increase would to be in the double digits. It has about 1.98 billion shares of common stock outstanding.

The current increase in the dividend will be effective as of May 2012. HP's previously announced dividend, payable on April 4, remains at 12 cents per share.

The company also amended its bylaws to reflect that it now has only 11 directors, down from 14 previously, HP said in a regulatory filing.

The slate of 11 directors were elected by shareholders at a meeting on Wednesday.