HSBC Holdings plc (NYSE:HSBC) to Issue Quarterly Dividend of $0.50

Key Points

• HSBC declared a quarterly dividend of $0.50 per share, payable December 17 to shareholders of record November 6; that equates to a $2.00 annualized dividend and a 2.4% yield.
• The dividend appears well covered: the payout ratio is 28.7%, and analysts expect next year’s earnings to cover the projected annual dividend.
• HSBC’s latest quarterly results fell short of expectations, reporting EPS of $2.10 versus a $2.20 consensus and revenue of $18.68 billion versus $18.98 billion expected. Analysts’ consensus rating is “Hold,” with an average price target of $97.

HSBC Holdings plc (NYSE:HSBC - Get Free Report) announced a quarterly dividend on Wednesday, October 14th. Stockholders of record on Friday, November 6th will be paid a dividend of $0.50 per share by the financial services provider on Thursday, December 17th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, November 6th.

HSBC has raised its dividend by an average of 0.3% per year over the last three years. HSBC has a dividend payout ratio of 28.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect HSBC to earn $9.66 per share next year, which means the company should continue to be able to cover its $1.98 annual dividend with an expected future payout ratio of 20.5%.

HSBC Stock Performance

NYSE HSBC opened at $84.60 on Wednesday. The firm has a 50-day moving average price of $97.71 and a two-hundred day moving average price of $93.36. HSBC has a 12-month low of $67.56 and a 12-month high of $107.92. The company has a market capitalization of $290.06 billion, a P/E ratio of 10.23, a P/E/G ratio of 0.94 and a beta of 0.56. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 0.53.

HSBC (NYSE:HSBC - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The financial services provider reported $2.10 EPS for the quarter, missing analysts' consensus estimates of $2.20 by ($0.10). HSBC had a return on equity of 14.33% and a net margin of 19.59%. The company had revenue of $18.68 billion during the quarter, compared to the consensus estimate of $18.98 billion. Analysts anticipate that HSBC will post 8.41 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on HSBC. Deutsche Bank Aktiengesellschaft reaffirmed a "neutral" rating on shares of HSBC in a report on Wednesday, August 5th. The Goldman Sachs Group reissued a "buy" rating on shares of HSBC in a research note on Wednesday, August 5th. JPMorgan Chase & Co. restated a "neutral" rating on shares of HSBC in a research report on Thursday, August 6th. Weiss Ratings upgraded HSBC from a "hold (c)" rating to a "buy (b-)" rating in a research note on Wednesday, October 28th. Finally, Citigroup reaffirmed a "neutral" rating on shares of HSBC in a report on Wednesday, October 28th. Four research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $97.00.

About HSBC

HSBC Holdings plc is a global banking and financial services company headquartered in London. Its principal subsidiary, The Hongkong and Shanghai Banking Corporation, was established in 1865 to facilitate trade between Europe and Asia. HSBC's shares trade on the New York Stock Exchange in the form of American depositary receipts under the symbol HSBC.

The company provides personal and wealth banking, commercial banking, corporate and institutional banking, investment banking, global markets, and asset management services.

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