HSBC Holdings plc (NYSE:HSBC) Plans Quarterly Dividend of $0.50

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 paid 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 4.41%. The ex-dividend date of this dividend is Thursday, May 9th.

HSBC has raised its dividend by an average of 36.2% annually over the last three years and has raised 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. Equities research 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 Price Performance

HSBC stock traded up $0.35 during mid-day trading on Wednesday, reaching $45.33. 248,042 shares of the company’s stock traded hands, compared to its average volume of 2,190,587. The stock has a 50 day moving average of $40.26 and a two-hundred day moving average of $39.34. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.51. HSBC has a 12-month low of $35.30 and a 12-month high of $45.35. The company has a market cap of $171.42 billion, a price-to-earnings ratio of 7.76, a PEG ratio of 1.00 and a beta of 0.58.

HSBC (NYSE:HSBC) last released 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). HSBC had a net margin of 16.13% and a return on equity of 10.80%. The company had revenue of $13.02 billion for the quarter. Equities analysts forecast that HSBC will post 6.77 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on HSBC. Barclays reiterated an “equal weight” rating on shares of HSBC in a research note on Wednesday, March 27th. BNP Paribas lowered HSBC from a “neutral” rating to an “underperform” rating in a research note on Tuesday, January 16th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $761.75.

HSBC Company Profile

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.