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

HSBC Holdings plc (NYSE:HSBC) declared a quarterly dividend on Tuesday, April 30th, Wall Street Journal reports. Stockholders 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 dividend 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 raised its dividend every year for the last 1 years. HSBC has a dividend 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. Equities 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

NYSE HSBC opened at $44.59 on Thursday. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.90 and a current ratio of 0.90. The company has a market capitalization of $168.63 billion, a price-to-earnings ratio of 7.53, a PEG ratio of 1.03 and a beta of 0.58. The stock has a 50-day moving average of $39.74 and a 200 day moving average of $39.19. HSBC has a one year low of $35.30 and a one year high of $44.59.

HSBC (NYSE:HSBC) last released its quarterly 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 firm had revenue of $13.02 billion for the quarter. HSBC had a net margin of 16.13% and a return on equity of 10.90%. On average, sell-side analysts forecast that HSBC will post 7.24 EPS for the current year.

Wall Street Analysts Forecast Growth

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