HSBC Holdings plc (HSBC) to Issue Quarterly Dividend of $2.25 on April 30th

HSBC Holdings plc (NYSE:HSBC) declared a quarterly dividend on Wednesday, February 25th. Stockholders of record on Friday, March 13th will be given a dividend of 2.25 per share by the financial services provider on Thursday, April 30th. This represents a c) dividend on an annualized basis and a dividend yield of 9.5%. The ex-dividend date is Friday, March 13th. This is a 350.0% increase from HSBC’s previous quarterly dividend of $0.50.

HSBC has raised its dividend by an average of 0.1%annually over the last three years. HSBC has a payout ratio of 28.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect HSBC to earn $7.12 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 27.8%.

HSBC Price Performance

HSBC opened at $94.48 on Friday. HSBC has a twelve month low of $45.66 and a twelve month high of $94.80. The firm has a 50-day moving average price of $84.45 and a 200-day moving average price of $74.38. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.49. The company has a market capitalization of $324.54 billion, a price-to-earnings ratio of 15.62, a PEG ratio of 1.00 and a beta of 0.52.

HSBC (NYSE:HSBC) last posted its quarterly earnings data on Wednesday, February 25th. The financial services provider reported $1.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.60 by $0.25. HSBC had a return on equity of 13.21% and a net margin of 16.07%.The company had revenue of $17.72 billion during the quarter, compared to analyst estimates of $17.01 billion. Equities analysts expect that HSBC will post 6.66 EPS for the current year.

Wall Street Analyst Weigh In

HSBC has been the subject of a number of research reports. Erste Group Bank upgraded HSBC from a “hold” rating to a “buy” rating in a report on Thursday, November 20th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of HSBC in a research note on Monday, December 29th. Bank of America raised HSBC from a “neutral” rating to a “buy” rating in a research report on Wednesday, December 10th. Citigroup reiterated a “buy” rating on shares of HSBC in a research note on Friday, January 9th. Finally, Morgan Stanley initiated coverage on shares of HSBC in a report on Wednesday, January 14th. They issued an “equal weight” rating for the company. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $63.00.

HSBC Company Profile

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.