HSBC Holdings plc (NYSE:HSBC) Announces $0.50 Quarterly Dividend

Key Points

• HSBC declared a quarterly dividend of $0.50 per share, payable September 25 to shareholders of record on August 14. The dividend implies a $1.98 annual payout and a 1.9% yield.
• The dividend appears well covered, with a 28.7% payout ratio; analysts expect HSBC to earn $9.52 per share next year, implying a projected payout ratio of 20.8%.
• HSBC reported quarterly earnings of $2.25 per share, slightly above estimates, while revenue of $19.04 billion also exceeded expectations. Shares recently traded at $102.80, near their 12-month high of $107.92.

HSBC Holdings plc (NYSE:HSBC - Get Free Report) announced a quarterly dividend on Tuesday, August 4th. Shareholders of record on Friday, August 14th will be paid a dividend of 0.50 per share by the financial services provider on Friday, September 25th. This represents a c) dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Friday, August 14th.

HSBC has raised its dividend payment by an average of 0.3%per year over the last three years. HSBC has a dividend payout ratio of 28.7% meaning its dividend is sufficiently covered by earnings. Analysts expect HSBC to earn $9.52 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 20.8%.

HSBC Price Performance

NYSE:HSBC traded down $3.24 during trading hours on Wednesday, reaching $102.80. 2,102,946 shares of the company's stock were exchanged, compared to its average volume of 1,912,586. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.52. The company has a market capitalization of $353.29 billion, a P/E ratio of 16.86, a price-to-earnings-growth ratio of 0.96 and a beta of 0.57. HSBC has a 12 month low of $62.43 and a 12 month high of $107.92. The business's 50-day simple moving average is $97.18 and its two-hundred day simple moving average is $90.68.

HSBC (NYSE:HSBC - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.01. The business had revenue of $19.04 billion during the quarter, compared to analyst estimates of $18.66 billion. HSBC had a return on equity of 13.35% and a net margin of 16.06%. Sell-side analysts expect that HSBC will post 8.64 EPS for the current fiscal year.

Insider Buying and Selling

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value of $418,757.53. Following the transaction, the insider owned 4,973 shares in the company, valued at approximately $90,061.03. This represents a 82.30% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.01% of the company's stock.

Institutional Trading of HSBC

A number of institutional investors have recently bought and sold shares of HSBC. Sivia Capital Partners LLC raised its stake in shares of HSBC by 19.0% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,896 shares of the financial services provider's stock worth $723,000 after purchasing an additional 1,899 shares in the last quarter. Invesco Ltd. raised its position in HSBC by 22.5% during the second quarter. Invesco Ltd. now owns 7,052 shares of the financial services provider's stock valued at $429,000 after acquiring an additional 1,295 shares in the last quarter. Jump Financial LLC acquired a new stake in HSBC in the second quarter valued at approximately $221,000. Cerity Partners LLC grew its position in HSBC by 3.1% in the second quarter. Cerity Partners LLC now owns 98,708 shares of the financial services provider's stock worth $6,000,000 after acquiring an additional 2,940 shares in the last quarter. Finally, Qube Research & Technologies Ltd increased its stake in shares of HSBC by 36.7% during the 2nd quarter. Qube Research & Technologies Ltd now owns 365,570 shares of the financial services provider's stock worth $22,223,000 after purchasing an additional 98,048 shares during the last quarter. Institutional investors and hedge funds own 1.48% of the company's stock.

About HSBC

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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