HSBC FY Results

[Horsey]

Seem to contain some surprises - but fourth interim dividend of 21c means that the FY divi is increased to 51c (50c in 2015).

http://www.cnbc.com/2017/02/20/hsbc-rep ... sults.html

HSBC site - https://tinyurl.com/zsmaqno

[JMN2]

Seem to contain some surprises - but fourth interim dividend of 21c means that the FY divi is increased to 51c (50c in 2015).

http://www.cnbc.com/2017/02/20/hsbc-rep ... sults.html

HSBC site - https://tinyurl.com/zsmaqno

Well your linked HSBC website shows 51c for 2015 too and 50c for 2014.

[Raptor]

Looks like the opening price will be marked down. I sold down my 9% portfolio holding end of last week, so now have a 6% exposure. For once I got lucky with timing, although some of the proceeds went to ISAT which promptly suffered a broker downgrade....

The HSBC yield is nice and juicy....

Down 4.53% on opening.

Raptor.

[77ss]

Seem to contain some surprises - but fourth interim dividend of 21c means that the FY divi is increased to 51c (50c in 2015).

http://www.cnbc.com/2017/02/20/hsbc-rep ... sults.html

HSBC site - https://tinyurl.com/zsmaqno

Well your linked HSBC website shows 51c for 2015 too and 50c for 2014.

The total $ dividend for 2016 is unchanged over 2015, at 51c.

Of more interest, perhaps, will be the sterling amount. If the current exchange rate of 1.24 persists, we can expect a Q4 payment of about 16.9p - up some 14-15% on Q4 2015.

[Dod1010]

Actually I think the results are a bit of a relief. They are maintaining the dividend at 51c and confirm that they can maintain this. The drop on reported profit is substantially made up of one off provisions and the underlying profit is largely unchanged. The fact that they are making another buyback of $1 billion at this time shows the financial strength of this conservative company.

As I commented a week or two back, I sold some of my shares at £7 and am not bothered what the market reaction is. The shares have done well in the last few months and I expect that to resume before too long.

Dod

[CatcheeMonkee]

The total $ dividend for 2016 is unchanged over 2015, at 51c.

Of more interest, perhaps, will be the sterling amount. If the current exchange rate of 1.24 persists, we can expect a Q4 payment of about 16.9p - up some 14-15% on Q4 2015.

So that's a yield of around 6.2%?? Worth topping HSBA up?

Edit: answered my own question and topped up at around 666.

[OZYU]

So that's a yield of around 6.2%?? Worth topping HSBA up?

If I was not up to weight on this one, this would be a topping up day at this 6%+ yield, because this is imho a very solid franchise. I think Mr Market is being a little harsh. Maybe it is 'efficient', something I have rarely believed.

Ozyu

[kempiejon]

HSBC, well HSBA are set on my next cheap dealing day this week. I can't say a wobble in price makes too much of a difference to me but I suppose a little extra yield is nice.

[Clitheroekid]

I've just made my first ever purchase of HSBA at £6.65.

This is the perfect situation for me. I'm hoping that the price will rebound somewhat after the drop today so that I can trade them on, but with such a juicy yield I'm more than happy to hang on to them if it doesn't.

(Sorry, I do realise that an intention to trade them is probably against the spirit of this board but there was no other obvious board to comment.)

Moderator Message:
Banking Sector board, will leave for now. Raptor.

[richfool]

I saw a video clip where the analyst was suggesting that the buybacks should have been 2 or 4 times the amount - i.e £2bn - £4bn. Otherwise he wasn't too worried about the results, - he was happy with the dividend.

[OLTB]

Burn him!

He's not the messHYPer, he's a very naughty boy.

[Arborbridge]

If I was not up to weight on this one, this would be a topping up day at this 6%+ yield, because this is imho a very solid franchise

I'm in the same boat with HSBA being 1.22x my median, and even at 6% yield only in 26th place for topups.

I agree with you and Dod about this share, but this situation pose's interesting questions about when one breaks one's own "rules" about the balance of a portfolio as given with the aid of HYPTUSS. Pertinent for me at present with HSBA in 26th place and IRV being in 1st place

Probably, at present, my preferred topup would be Greene King rather than HSBA.

Arb.

[Dod1010]

Even after my sale last week at £7 I am still well over my median so will not be doing anything. It should be a good buy at current levels (anything below £7) given the yield which appears to be secure. The further share buy back whilst not big in terms of the size of the company will help to maintain the dividend as well.

Dod

[77ss]

Even after my sale last week at £7 I am still well over my median so will not be doing anything. It should be a good buy at current levels (anything below £7) given the yield which appears to be secure. The further share buy back whilst not big in terms of the size of the company will help to maintain the dividend as well.

Dod

Agreed. I had been thinking about topping up my (somewhat underweight) holding anyway, so yesterday's dip in share price just prodded me into action. Now somewhat overweight.

[Minesadouble]

Earlier I top sliced my Smiths Group holding and topped up HSBC at 673, doubling my yield in the process.
I'll now treat my HSBC holding like my RDSB position and regard it as closed (i.e. no further top ups), having reached a significant £ quantum.

[kempiejon]

Probably, at present, my preferred topup would be Greene King rather than HSBA.

Arb.

I added to both today, even though it does make me heavier in financials.
.

[Minesadouble]

Parallel lives!

I've also added to my Greene King position, as well as HSBC.

Great minds...and all that stuff

[Arborbridge]

You've all done very well

There's always more to top up, more, more, more!

[monabri]

You are only overweight because you haven't yet topped up the other shares to balance !

[kempiejon]

You are only overweight because you haven't yet topped up the other shares to balance !

That is quite true, but as a caution to our readers, it's worth focusing on one of the cores of the strategy - diversification to help minimise risk. Last time I over-weighted a sector thinking I could balance out later on it caught me out and might have impacted a bit less if I'd stuck to the diversification guideline rather than hunting the bargains, I'll remember that and not go that overweight in a sector/company level again. As a builder it's possible to guide the balance along the way but having been caught overweight in banks I'll not go that path again.