HSBC Holdings
Website:
HSBC Holdings
Index:
FTSE 100
EPIC: HSBA
Supersector:
Banks
Sector:
Banks
Subsector:
Banks
Market Cap:
£234.9B
Payout Frequency: Quarterly
HSBC Holdings Dividend Analysis and Summary
Dividend declaration and timetable
- Declared: First interim dividend for 2026 of $0.10 per ordinary share (approx. $1.72bn total distribution).
- Ex-dividend date: 14/05/2026 (London, Hong Kong, Bermuda). ADS ex-div: 15/05/2026.
- Record date: 15/05/2026.
- Payment date: 26/06/2026.
- Currency: Payable in USD (default varies by register); election deadline 10/06/2026.
- ADS: $0.50 per ADS (5 ordinary shares per ADS); optional DRIP; depositary fee $0.005 per ADS; DRIP election by 05/06/2026.
Policy and guidance relevant to dividends
- Dividend framework: target payout ratio (on “target basis” EPS excluding material notable items) of 50% for 2026.
- Capital: CET1 ratio at 14.0% (vs 14.9% at FY25); management intends to run CET1 in the 14.0–14.5% range.
- Buybacks: may resume subject to normal quarterly considerations; no buyback announced with this update.
- 2026 guidance: banking NII around $46bn (raised); ECL guidance increased to ~45bps of average gross loans (from ~40bps).
Coverage and sustainability
- Earnings cover: 1Q26 basic EPS $0.41 vs dividend $0.10 implies c.24% payout of reported EPS for the quarter; comfortably covered even before adjustments used for the 50% target basis.
- Profitability: 1Q26 RoTE 17.3% (ex-notables 18.7%); revenue up 6% YoY; banking NII +6% YoY on deposit growth and hedge reinvestment.
- Capital support: CET1 at the low end of the target range after the Hang Seng Bank privatisation and recent cash dividends, but still within the guided band; LCR a strong 135%.
- Cost/ECL outlook: disciplined cost growth target (~1% YoY on target basis). Higher ECL run-rate (~45bps) and a one-off fraud charge ($0.4bn) temper earnings but remain manageable against guidance for RoTE of =17% (ex-notables) for 2026–2028.
- Trajectory: The $0.10 first interim matches 1Q25, indicating a steady start; full-year dividends are guided by the 50% payout-target basis and overall earnings progression through 2026.
Structural changes and capital allocation considerations
- Privatisation of Hang Seng Bank completed (now wholly owned): reduces non-controlling interests, narrows CET1 headroom near term but expected synergies ($0.5bn pre-tax by 2028) support medium-term earnings.
- Ongoing portfolio reshaping: completed sale of UK life insurance business and South Africa; held-for-sale classification for Malta; completed Sri Lanka retail exit; binding agreement to sell Indonesia retail banking (H1 2027 completion expected). Additional targeted reviews in Australia, Egypt, and HSBC Life Singapore.
- Capital returns mix: Management will balance the cash dividend (50% target basis payout) with potential share buybacks once CET1 rebuilds within the 14–14.5% range.
Risks and flags for dividend stability
- Credit costs: ECL guidance lifted to ~45bps and a notable $0.4bn fraud-related charge in 1Q26; adds earnings volatility risk.
- Macro/geopolitical: Heightened uncertainty from the Middle East conflict (management models include a new Downside 1 scenario); interest-rate path volatility could affect NII and capital OCI reserves.
- Hong Kong CRE exposure: Continued valuation pressure; ECL allowance modestly higher, though migration slowed and portfolio largely secured.
- Capital buffer: CET1 at 14.0% (low end of range) after strategic actions and dividends may limit near-term buybacks, but does not currently threaten the cash dividend policy.
- Disposal impacts: Further disposals may introduce notable items and transitional effects, though these are excluded from the payout-target basis.
Read more
HSBC Holdings Annual Dividend Yield - 3.01%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/03/2026 |
30/04/2026 |
4th Interim |
45.00¢ |
USX |
| 14/05/2026 |
26/06/2026 |
1st Interim |
10.00¢ |
USX |
Total (Annual Dividends Per Share):
40.91p
(Using exchange rate on 04/06/2026
$ = £0.74377)
Dividend Yield =
Annual Dividends Per Share (40.91p)
÷ Share Price (1360.8p)
= 3.01%
HSBC Holdings Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/05/2026 |
26/06/2026 |
1st Interim |
10.00¢ |
USX |
| 12/03/2026 |
30/04/2026 |
4th Interim |
45.00¢ |
USX |
| 06/11/2025 |
18/12/2025 |
3rd Interim |
10.00¢ |
USX |
| 14/08/2025 |
26/09/2025 |
2nd Interim |
10.00¢ |
USX |
| 08/05/2025 |
20/06/2025 |
1st Interim |
10.00¢ |
USX |
| 06/03/2025 |
25/04/2025 |
4th Interim |
36.00¢ |
USX |
| 07/11/2024 |
19/12/2024 |
3rd Interim |
10.00¢ |
USX |
| 15/08/2024 |
27/09/2024 |
2nd Interim |
10.00¢ |
USX |
| 09/05/2024 |
21/06/2024 |
1st Interim |
10.00¢ |
USX |
| 09/05/2024 |
21/06/2024 |
Special |
21.00¢ |
USX |
| 07/03/2024 |
25/04/2024 |
4th Interim |
31.00¢ |
USX |
| 09/11/2023 |
21/12/2023 |
3rd Interim |
10.00¢ |
USX |
| 10/08/2023 |
21/09/2023 |
2nd Interim |
10.00¢ |
USX |
| 11/05/2023 |
23/06/2023 |
Interim |
10.00¢ |
USX |
| 02/03/2023 |
27/04/2023 |
2nd Interim |
23.00¢ |
USX |
| 18/08/2022 |
29/09/2022 |
Interim |
9.00¢ |
USX |
| 10/03/2022 |
28/04/2022 |
2nd Interim |
18.00¢ |
USX |
| 19/08/2021 |
30/09/2021 |
Interim |
7.00¢ |
USX |
| 11/03/2021 |
29/04/2021 |
Interim |
15.00¢ |
USX |
| 27/02/2020 |
14/04/2020 |
4th Interim |
21.00¢ |
USX |
| 10/10/2019 |
20/11/2019 |
3rd Interim |
10.00¢ |
USX |
| 15/08/2019 |
26/09/2019 |
2nd Interim |
10.00¢ |
USX |
| 16/05/2019 |
05/07/2019 |
1st Interim |
10.00¢ |
USX |
| 21/02/2019 |
08/04/2019 |
4th Interim |
21.00¢ |
USX |
| 11/10/2018 |
21/11/2018 |
3rd Interim |
10.00¢ |
USX |
| 16/08/2018 |
27/09/2018 |
2nd Interim |
10.00¢ |
USX |
| 17/05/2018 |
05/07/2018 |
1st Interim |
10.00¢ |
USX |
| 22/02/2018 |
06/04/2018 |
4th Interim |
21.00¢ |
USX |
| 12/10/2017 |
22/11/2017 |
3rd Interim |
10.00¢ |
USX |
| 03/08/2017 |
20/09/2017 |
2nd Interim |
10.00¢ |
USX |
| 18/05/2017 |
05/07/2017 |
1st Interim |
10.00¢ |
USX |
| 23/02/2017 |
06/04/2017 |
4th Interim |
21.00¢ |
USX |
| 20/10/2016 |
06/12/2016 |
3rd Interim |
10.00¢ |
USX |
| 11/08/2016 |
28/09/2016 |
2nd Interim |
10.00¢ |
USX |
| 19/05/2016 |
06/07/2016 |
1st Interim |
10.00¢ |
USX |
| 03/03/2016 |
20/04/2016 |
4th Interim |
21.00¢ |
USX |
| 22/10/2015 |
03/12/2015 |
3rd Interim |
10.00¢ |
USX |
| 13/08/2015 |
02/10/2015 |
2nd Interim |
10.00¢ |
USX |
| 21/05/2015 |
08/07/2015 |
1st Interim |
10.00¢ |
USX |
| 05/03/2015 |
30/04/2015 |
4th Interim |
20.00¢ |
USX |
| 23/10/2014 |
10/12/2014 |
3rd Interim |
10.00¢ |
USX |
| 20/08/2014 |
09/10/2014 |
2nd Interim |
10.00¢ |
USX |
| 21/05/2014 |
10/07/2014 |
1st Interim |
10.00¢ |
USX |
| 12/03/2014 |
30/04/2014 |
4th Interim |
19.00¢ |
USX |
| 23/10/2013 |
11/12/2013 |
3rd Interim |
10.00¢ |
USX |
| 21/08/2013 |
09/10/2013 |
2nd Interim |
10.00¢ |
USX |
| 22/05/2013 |
11/07/2013 |
1st Interim |
10.00¢ |
USX |
| Year |
Interim |
Special |
Currency |
Total |
Change |
| 2024 |
|
21.000 |
USX |
82.000 |
54.710 |
| 2023 |
10.000 |
|
USX |
53.000 |
96.290 |
| 2022 |
9.000 |
|
USX |
27.000 |
22.720 |
| 2021 |
22.000 |
|
USX |
22.000 |
4.760 |
| 2020 |
|
|
USX |
21.000 |
-58.820 |
| 2019 |
|
|
USX |
51.000 |
0.000 |
| 2018 |
|
|
USX |
51.000 |
0.000 |
| 2017 |
|
|
USX |
51.000 |
0.000 |
| 2016 |
|
|
USX |
51.000 |
2.000 |
| 2015 |
|
|
USX |
50.000 |
2.040 |
| 2014 |
|
|
USX |
49.000 |
63.330 |
| 2013 |
|
|
USX |
30.000 |
|
HSBC Holdings Dividend Calculator
HSBC Holdings Dividend Growth
| Dividend Growth (1Y) |
11.45%
|
| Dividend CAGR (5Y) |
38.9%
|
| Years of Growth |
–
|
| Payout Ratio |
61.05%
|
| Buyback Yield |
4.25%
|
| Shareholder Yield |
8.34%
|
| P/E Ratio (TTM) | 14.88 |
|---|
| Forward P/E | 10.38 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 6.85% |
|---|
| FCF Yield | – |
|---|
| ROE | 11.61% |
|---|
| ROCE | – |
|---|
| Profit Margin | 34.98% |
|---|
| Operating Margin | 47.06% |
|---|
| Gross Margin | – |
|---|