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Established in 1865 in Hong Kong, London-based HSBC is one of the largest banks in the world, with assets of USD 3 trillion and 40 million customers worldwide.

It operates across 64 countries with around 220,000 full-time staff. Key regions include Asia, Europe, the Middle East and North Africa, and North America. The United Kingdom and Hong Kong are the two largest markets for the bank.

The bank offers retail, commercial and institutional banking, global banking and markets, wealth management, and private banking.

Three key data points gauge

HSBC Holdings PLC or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

HSBC Price

Over the past year, HSBC share price grew about 22% from $30.85 to $39.72 as of Thursday’s market close.

If HSBC Holdings trades in the range of $30.00 to $50.00 this next year, its recent $39.72 share price might rise to $ 45.00 by next year. Of course, HSBC price could drop about the same $5.28 estimated amount, or more.

My annual upside estimate of $5.28 however, is about $2.69 under the median of one-year targets from three analysts covering HSBC for brokers.

HSBC Dividend

HSBC Holdings PLC has paid Quarterly variable dividends since April 27, 2000.HSBC’s most recent Q dividend of $0.50 was paid today, December 22, 2023, to shareholders of record on November 9th. The forward-looking $2.00 annual dividend yields 5.04% at Thursday’s $39.72 share price.

HSBC Returns

To put it all together, add the annual dividend of$2.00 to the price upside of $5.28 to find a $7.28 gross gain.

At Thursday’s $39.72 share price, a little under $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us$0.40 per share.

Subtracting that likely $0.40 brokerage cost from the $7.28 gross gain produces a net gain of $6.88 X 25 shares = $172.00 for a 17.3% estimated net gain.

You might choose to pounce on HSBC Holdings PLC. It is a 160-year-old Hong Kong-based, worldwide banking firm. Furthermore, the estimated $50.40 of dividend income from $1k invested is almost 1.27 times greater than HSBC’s $39.72 single share price.

The exact track of HSBC Holdings PLC ongoing future price and dividend is yet to be known.

Remember the true value of any stock is best realized through personal ownership of shares.

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