I know some HYPers hold HSBC in their HYPs, so this should be of interest to them.
Ian.
Retracted information re: dividends removed. --MDW1954
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On 2 August 2021, the Directors approved an interim dividend for the 2021 half-year of $0.07 per ordinary share. The interim dividend was paid on 30 September 2021 in cash in US dollars, or in sterling or Hong Kong dollars at exchange rates determined on 20 September 2021. The Group will not pay quarterly dividends during 2021, but will review whether to revert to paying quarterly dividends at or ahead of its 2021 results announcement in February 2022.
funduffer wrote:In the release on Investegate, they say they will review whether to revert to quarterley dividends before the finals in Feb 2022:
On 2 August 2021, the Directors approved an interim dividend for the 2021 half-year of $0.07 per ordinary share. The interim dividend was paid on 30 September 2021 in cash in US dollars, or in sterling or Hong Kong dollars at exchange rates determined on 20 September 2021. The Group will not pay quarterly dividends during 2021, but will review whether to revert to paying quarterly dividends at or ahead of its 2021 results announcement in February 2022.
https://www.investegate.co.uk/hsbc-hold ... 00120273Q/
Would be nice if they did.
FD
pyad wrote:Given the improving eps situation this bit was useful, reiterating their previous guidance on the likely payout ratio:
...As signalled at our interim results in August, we now expect to move to within our target dividend payout ratio range of 40% to 55% of reported earnings per ordinary share in 2021...
More painful for div investors is this other quote from the update:
...Given our strong capital position and notwithstanding growth opportunities available to us, we intend to initiate a share buyback of up to $2bn, which we expect to commence shortly...
$2bn down the toilet with no benefit to anyone other than their institutional mates, which could have been ours.
scrumpyjack wrote:Quite so Dod. If they do return to more normal levels of dividends it saves a lot, in the long term, having reduced the number of shares in issue, and it makes sense to buy back shares when the share price is so depressed (as long as the directors believe in their recovery).
As with the other banks the profits look very healthy but one should bear in mind that much of the profit is the writing back of previous provisions. They all made huge bad debt provisions when Covid struck which have turned out not to be needed so they have written them back.
monabri wrote:...I'm sort of swinging to Pyad's view in terms of how much nicer the 10 cent per share divi would have been in my pocket...
pyad wrote:monabri wrote:...I'm sort of swinging to Pyad's view in terms of how much nicer the 10 cent per share divi would have been in my pocket...
Quite but as usual with buyback discussions, there are one or two turkeys voting for Christmas round here.
I can recall when it was actually illegal for a company in the UK to purchase its own shares.
Dod101 wrote:I can recall when it was actually illegal for a company in the UK to purchase its own shares.
tjh290633 wrote:Dod101 wrote:I can recall when it was actually illegal for a company in the UK to purchase its own shares.
As I understand it, it still is illegal unless the shareholders vote in favour at each AGM.
My thoughts are that an invitation to shareholders to tender their shares is a much better way of returning value. But probably most shareholders prefer to kep their shares.
TJH
Please excuse my ignorance Terry but what is this mechanism of which you speak? Is this something which goes by another name that is more familiar (well at least to me), or, is this perhaps something that doesn't happen often such that youngsters (61) like me wouldn't have seen it, or, something else?tjh290633 wrote:My thoughts are that an invitation to shareholders to tender their shares is a much better way of returning value.
csearle wrote:Please excuse my ignorance Terry but what is this mechanism of which you speak? Is this something which goes by another name that is more familiar (well at least to me), or, is this perhaps something that doesn't happen often such that youngsters (61) like me wouldn't have seen it, or, something else?tjh290633 wrote:My thoughts are that an invitation to shareholders to tender their shares is a much better way of returning value.
Chris
csearle wrote:Please excuse my ignorance Terry but what is this mechanism of which you speak? Is this something which goes by another name that is more familiar (well at least to me), or, is this perhaps something that doesn't happen often such that youngsters (61) like me wouldn't have seen it, or, something else?tjh290633 wrote:My thoughts are that an invitation to shareholders to tender their shares is a much better way of returning value.
monabri wrote: However, looking at the number of shares I hold in HSBC and the effective loss of a 10 cent dividend, I'm sort of swinging to Pyad's view in terms of how much nicer the 10 cent per share divi would have been in my pocket.
Gengulphus wrote:(It's occurred to me while writing this post that the latter may well be the reason why I've rarely if ever seen a HYP company do a tender offer for their ordinary shares - the regulatory costs might grow very large indeed if one has to comply with many countries' regulations.)
Thank you ever so much for that explanation. All new to me! C.Gengulphus wrote:...
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