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

HSBC Holdings plc (NYSE:HSBC) announced a quarterly dividend on Tuesday, April 30th, Wall Street Journal reports. Investors of record on Friday, May 10th will be given a dividend of 0.50 per share by the financial services provider on Friday, June 21st. This represents a $2.00 dividend on an annualized basis and a yield of 4.49%. The ex-dividend date is Thursday, May 9th.

HSBC has raised its dividend payment by an average of 36.2% per year over the last three years and has increased its dividend every year for the last 1 years. HSBC has a payout ratio of 102.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect HSBC to earn $6.43 per share next year, which means the company should continue to be able to cover its $6.20 annual dividend with an expected future payout ratio of 96.4%.

HSBC Stock Performance

NYSE HSBC traded up $0.90 during trading hours on Thursday, reaching $44.55. 282,596 shares of the company were exchanged, compared to its average volume of 2,215,146. HSBC has a 1 year low of $35.30 and a 1 year high of $44.70. The business’s 50 day simple moving average is $39.74 and its 200-day simple moving average is $39.19. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $168.47 billion, a P/E ratio of 7.53, a P/E/G ratio of 1.03 and a beta of 0.58.

HSBC (NYSE:HSBC) last posted its earnings results on Wednesday, February 21st. The financial services provider reported $0.57 earnings per share for the quarter, missing the consensus estimate of $0.90 by ($0.33). The business had revenue of $13.02 billion during the quarter. HSBC had a return on equity of 10.90% and a net margin of 16.13%. On average, equities research analysts expect that HSBC will post 7.24 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently weighed in on HSBC shares. Barclays reiterated an “equal weight” rating on shares of HSBC in a research note on Wednesday, March 27th. BNP Paribas lowered shares of HSBC from a “neutral” rating to an “underperform” rating in a research report on Tuesday, January 16th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $811.00.

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.