HP's Hidden Strength: A Dividend Champion in the Shadow of Apple

Apple and HP are two vastly different companies in the tech industry, with Apple being one of the most valuable publicly traded companies in the world. With a market cap of nearly $5 trillion, it's no wonder that every product launch, earnings report, and price move makes headlines. On the other hand, HP operates in a smaller niche, but still offers a strong business selling desktops and laptops, as well as remaining one of the leading innovators in the printing market.

When looking at their financials, Apple's growth is clear, with sales rising 16.4% year-over-year to $109.42 billion in its latest Q3 FY'26 report. Net income also increased 21.1% to $29.79 billion. HP, on the other hand, posted fair growth, but much lower figures: sales increased 9% YoY to $14.41 billion, and net income rose 10.8% to $450 million.

Apple's forward P/E stands at a high 40.80x, while HP trades at a significantly cheaper forward P/E of only 8.48x. However, it's Apple that offers the better dividend yield, with a forward annual dividend of $1.08 and a payout ratio of 12.51%. HP, on the other hand, pays its shareholders $1.20 annually, with a dividend payout ratio of 35%.

For income investors, HPQ stock may offer a more appealing entry point and yield, but Apple's dominance and better reception at Wall Street may be the clincher for most investors.