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

Key Points

• HSBC Holdings plc has announced a dividend of $0.50 per share, to be paid to stockholders on September 26th, representing a high dividend yield of 308.0%.
• The bank's earnings per share for the last quarter was reported at $1.95, surpassing analysts' expectations and showcasing a robust revenue of $16.90 billion.
• Analysts hold a "neutral" rating on HSBC stock with a consensus target price of $63.00, reflecting a mix of hold and buy ratings from various investment analysts.

HSBC Holdings plc (NYSE:HSBC - Get Free Report) declared a dividend on Tuesday, August 12th, investing.com reports. Stockholders of record on Monday, August 18th will be paid a dividend of 0.495 per share by the financial services provider on Friday, September 26th. This represents a dividend yield of 308.0%. The ex-dividend date of this dividend is Friday, August 15th.

HSBC has a dividend payout ratio of 29.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect HSBC to earn $7.12 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 28.1%.

HSBC Stock Performance

NYSE:HSBC opened at $64.19 on Tuesday. HSBC has a twelve month low of $41.44 and a twelve month high of $65.75. The firm has a market capitalization of $224.10 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 1.42 and a beta of 0.60. The company has a current ratio of 0.86, a quick ratio of 0.93 and a debt-to-equity ratio of 0.65. The firm's fifty day simple moving average is $61.45 and its 200 day simple moving average is $57.76.

HSBC (NYSE:HSBC - Get Free Report) last issued its earnings results on Wednesday, July 30th. The financial services provider reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.62 by $0.33. The company had revenue of $16.90 billion during the quarter, compared to the consensus estimate of $16.64 billion. HSBC had a return on equity of 12.73% and a net margin of 13.48%. As a group, equities research analysts expect that HSBC will post 6.66 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Separately, Bank of America reaffirmed a "neutral" rating and issued a $63.00 target price on shares of HSBC in a research report on Tuesday, June 3rd. Five investment analysts have rated the stock with a hold rating and one has given a buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $63.00.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.

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