Financial News
Written by: Zhang Weilun
2021-02-23 19:05
Last update date: 2021-02-23 19:05
The shareholders of HSBC Holdings (0005) received a small gift from the bank.
The bank announced the distribution of a 2020 final dividend of US$0.15 (approximately 1.16 yuan), which is the upper limit allowed by the UK Prudential Regulation Authority (PRA).
Based on today's closing price of 46.7 yuan, the dividend yield is 2.5%.
After HSBC released the list, the stock price once reached 49.5 yuan, and then the increase significantly narrowed to 0.4%.
From today’s share price performance, shareholders did not applaud the bank’s performance and dividends.
So in the future, will the bank surprise shareholders in the amount of dividends?
First look at the position of the bank's management.
In the latest results, it is pointed out that the Association has adopted a sustainable dividend policy in the future.
It is only important to note that the bank has changed its previous quarterly dividend policy this year. When it announced its interim results in August this year, it considered whether to declare a dividend. I believe this is what surprised investors the most.
After all, there are not too many listed companies in Hong Kong that pay quarterly dividends. Except for Hang Seng Bank (0011) and China Power Holdings (0002), only HSBC before 2019 is left.
As HSBC will not pay quarterly dividends this year, minority shareholders will not be able to obtain a certain amount of cash flow every quarter.
However, investors do not need to be overly disappointed. The bank also added in its results to conduct a review before or before the announcement of its annual results in February next year to determine whether to resume quarterly dividends.
Perhaps then the bank's management can bring surprises again.
From the historical HSBC dividend record, the maximum annual dividend is 0.51 US dollars.
So how many dividends will the bank pay to minority shareholders in the future?
Looking at the period from 2010 to 2018, the bank paid a dividend of at least US$0.34 per share each year. Since 2015, it has paid shareholders a dividend of US$0.51 per share each year for 4 consecutive years.
Dividends per share for the full year of 2019 fell to US$0.3. This is related to the European and UK regulators' requirements for financial institutions not to distribute dividends and repurchase during the year in response to the new crown pneumonia epidemic, resulting in HSBC and Standard Chartered registered in the UK The Group (2888) was unable to pay the fourth and final dividends for 2019, which dragged down the annual dividend.
Even though HSBC was willing to share the results with shareholders in the past and pay generous dividends, in the new economic environment under the new crown pneumonia epidemic, the reference value of the previous dividend amount has been much lower than before.
Therefore, we can only refer to the opinions of major banks.
According to the forecasts of many major banks before HSBC's release, they all expect the bank to pay more dividends this year than in 2020.
JPMorgan Chase expects that from 2021 to 2023, HSBC’s dividend per share will be US$0.21; Morgan Stanley expects HSBC’s 2021 dividend to be US$0.22.
Barclays expects HSBC to pay US$0.25 a year in dividends in 2021 and 2022; Goldman Sachs predicts that HSBC will pay US$0.3 and US$0.4 in dividends this year and next year.
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