FTSE 100-listed HSBC Holdings (GB:HSBA) is a healthy dividend stock for regular income-seeking investors. HSBC boasts an attractive dividend yield of 6.75%, significantly higher than the sector average. The bank paid its third interim dividend for Fiscal 2023 of 8.23p per share on December 21, 2023.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The British banking giant offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking solutions. HSBC is considered one of the largest banks in the world and is of systemic importance to the global financial system. HSBC shares have gained over 13% in the past year.
HSBC’s Dividend is Backed by Solid Business
HSBC aims to maintain a dividend payout of 50% for 2023 and 2024. Moreover, in the first half of 2024, HSBC committed to pay a special dividend of $0.21 per share from the sale proceeds of its Canadian operations to the banking giant Royal Bank of Canada (NYSE:RY).
HSBC has been paying dividends for several years. It did stop dividend payments in 2020 (cancelled the payment of the fourth interim dividend for 2019) at the height of the pandemic but restored them during its Q1 FY23 results when profits more than tripled. Remarkably, HSBA stock earns a Smart Score of Nine on TipRanks’ Smart Score Rating System. This implies that the stock is highly likely to outperform market expectations.
HSBC has survived the test of the COVID-19 pandemic with a sound financial standing and loyal customer support. The bank continues to make meaningful acquisitions. The bank also has plans to grow its footprint globally and increase its market share. HSBC is also launching its Zing app to compete with fintech startups in the international payments space. The bank will offer low-cost foreign exchange services to non-customers through its app.
Is HSBC a Buy or Sell Share?
On TipRanks, HSBA stock has a Moderate Buy consensus rating based on seven Buys, four Holds, and one Sell rating. The HSBC Holdings share price forecast of 794.30p implies 29.2% upside potential from current levels.
