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

HSBC Holdings plc (NYSE:HSBC) declared a quarterly dividend on Thursday, August 1st, Wall Street Journal reports. Shareholders of record on Friday, August 16th will be given a dividend of 0.50 per share by the financial services provider on Friday, September 27th. This represents a $2.00 dividend on an annualized basis and a yield of 4.71%. The ex-dividend date of this dividend is Friday, August 16th.

HSBC has increased its dividend payment by an average of 36.2% per year over the last three years. HSBC has a dividend payout ratio of 32.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect HSBC to earn $6.88 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 29.1%.

HSBC Stock Down 6.0 %

HSBC opened at $42.46 on Friday. 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 12 month low of $35.30 and a 12 month high of $45.53. The stock’s 50 day moving average price is $43.73 and its 200 day moving average price is $41.52. The stock has a market cap of $159.26 billion, a P/E ratio of 7.32, a P/E/G ratio of 1.19 and a beta of 0.58.

HSBC (NYSE:HSBC) last announced its earnings results on Tuesday, April 30th. The financial services provider reported $1.70 earnings per share (EPS) for the quarter. The firm had revenue of $20.75 billion during the quarter. HSBC had a net margin of 15.61% and a return on equity of 10.56%. As a group, research analysts predict that HSBC will post 5.74 earnings per share for the current year.

Analysts Set New Price Targets

Separately, Dbs Bank upgraded shares of HSBC to a “strong-buy” rating in a report on Wednesday. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, two have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $822.50.

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.