HSBC Holdings plc (HSBC) to Issue Quarterly Dividend of $0.50 on June 21st

HSBC Holdings plc (NYSE:HSBC) declared 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 annualized dividend and a yield of 4.47%. The ex-dividend date is Thursday, May 9th.

HSBC has increased its dividend by an average of 36.2% annually over the last three years and has increased its dividend annually for the last 1 consecutive years. HSBC has a payout ratio of 102.1% indicating that 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 Up 0.7 %

Shares of NYSE:HSBC opened at $44.78 on Tuesday. The firm’s 50-day moving average is $40.13 and its two-hundred day moving average is $39.29. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.96 and a quick ratio of 0.96. HSBC has a 1 year low of $35.30 and a 1 year high of $44.82. The firm has a market capitalization of $169.34 billion, a PE ratio of 7.72, a price-to-earnings-growth ratio of 1.00 and a beta of 0.58.

HSBC (NYSE:HSBC) last announced its quarterly earnings data on Wednesday, February 21st. The financial services provider reported $0.57 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($0.33). HSBC had a net margin of 16.13% and a return on equity of 10.80%. The company had revenue of $13.02 billion during the quarter. Analysts predict that HSBC will post 6.77 EPS for the current year.

Analyst Ratings Changes

Several brokerages have recently weighed in on HSBC. Barclays restated an “equal weight” rating on shares of HSBC in a research report on Wednesday, March 27th. BNP Paribas lowered HSBC from a “neutral” rating to an “underperform” rating in a report on Tuesday, January 16th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $761.75.

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.