Hsbc Share Discussion Threads

[pj84] 26/9/2024 11:24

I also agree buybacks are not part of the yield and am generally not a fan of buybacks and would prefer it to be all paid as a dividend but it is still a great stock and at least the buybacks reduce the total cost of future dividends which should assist the ability to increase future dividends.

[ifthecapfits] 26/9/2024 10:46

Still a great stock though.

[spud] 26/9/2024 10:20

Agreed Anhar.

spud

[anhar] 26/9/2024 10:02

I dislike that habit of some analysts of adding buybacks to divis and showing the resulting "yield" as an ultra high figure, thereby giving an utterly misleading view of a share to the naive.

Yield is based on divis as a percentage of the share price and that's all there is to it. Clear, simple, factual in stating what the investor will receive in cash.

Views are divided on the merits of BBs but whatever your opinion, they are not part of "yield".

[pj84] 26/9/2024 09:52

"Top pick

One stock that didn’t move, retaining its position as the number-one holding, is HSBC (GB:HSBA), the London-listed, Asia focused lender that is Europe’s biggest bank by assets. It accounts for 8.8% of the portfolio.

‘Actually, it’s kind of a structural position,’ Roman said, noting the bank accounts for roughly 14% of the fund’s benchmark, the Stoxx Europe 600 Banks index, way ahead of the weighting permitted by the EU’s framework for regulating mutual funds. ‘I like the stock and would like to have more but as a Ucits-regulated fund, we cannot have more than 10% of the fund in one stock,’ he said.

Yet the managers also have a highly favourable view of HSBC, whose new chief executive Georges Elhedery, has already begun to set out his stall with plans to weed out middle-management costs and strengthen its corporate banking, particularly around cross-border trading and financing. He is also expected to renew the previous regime’s decision to prioritise bringing in more fees from wealth management.

Roman said he favoured the bank for all of these reasons, adding: ‘HSBC has always traded at a premium in the past due to the Asia growth prospects. And, of course, now the view of Asia growth is not what it used to be. But still what we see is there is quite a lot of momentum, not so much in Hong Kong yet, but in southeast Asia, and Singapore especially.


‘On top of that, we think that for the quality of the franchise, the yield is just incredible – it’s one of the best-paying stocks in terms of double carry. If you add dividends and buybacks you’re not far from 13%. That’s one of the highest paying stocks in the [banking] universe.’"

[action] 25/9/2024 16:09

Recommended by Montly... Oh no...

[anhar] 16/9/2024 16:17

Sterling value of US10¢ Q2 divi announced: 7.5817p

payable 27 Sep.

[action] 12/9/2024 06:48

Based 3.1 delays. Good for uk banks

[action] 03/9/2024 17:03

Need to re-enter again for qtrly divi

[action] 31/8/2024 11:27

Banks are in favour again in USA with divi qtrly.

[action] 23/8/2024 11:11

I mean recent low seen with divi

[suetballs] 23/8/2024 09:49

It was.
Suet

[nerja] 23/8/2024 09:19

Thought xd was the 15th aug

[action] 23/8/2024 08:47

Down we go. Are we going to see recent low b4 exd

[nemesis6] 22/8/2024 12:18

little risk long term i think...but im thinking the same with SDR

[adeg] 20/8/2024 11:59

That is the question.

[action] 20/8/2024 08:47

To buy or not to buy

[action] 17/8/2024 20:24

What would I do if company announced 3 billion buy back to be completed in 3 months if I am MM. Best thing to increase the price when company doing the buying from market and sell high and off load stock. Then bring down the price to replenish the stock sold at higher price. At most punters can do day trading like MM.

[skinny] 16/8/2024 09:07

ABDN -being a case in point..

[anhar] 16/8/2024 09:05

Spud is correct. There is no correlation between buybacks and a rising share price though you often see the view round these boards that there is some connection. Consequently I think it is misleading for PIs to welcome BBs if their reason is an expected price rise.

There may be other benefits of BBs, though personally I'm dead against them in most cases, but a rising price aint one of them.

[spud] 15/8/2024 21:38

Buybacks aren't the silver bullet many believe they are.spud