Moody's: Hewlett-Packard unchanged

Moody's Investors Service said that Hewlett-Packard Co.'s announcement that its board authorized a 50% increase in its common stock dividend will not affect the company's A2 long-term and Prime-1 short-term debt ratings or stable outlook.

The dividend increase, the company's first increase in over a decade, is effective May and will result in about an additional $379 million of annual payments, which will exceed $1.1 billion on a run rate basis, the agency said.

The last rating action on Hewlett was May 13, 2008 when Moody's affirmed its ratings following the company's announcement that it entered into a definitive agreement to buy Electronic Data Systems.

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