Boston, MA 05/27/2014 (wallstreetpr) – The global banking and financial services organization HSBC Holdings plc (ADR) (NYSE:HSBC) believes that the future is brighter than the naked eye can see. At least, that is true looking at how far the bank has come with its slimming and cost-saving strategies.
As a smaller and leaner company, HSBC is not only able to sprint faster towards generating higher revenue and profits, but also able to increase its shareholder reward program.
While in Hon Kong last week, HSBC’s Chief Executive Officer Stuart Gulliver address an important issue that shareholders have been concerned about in recent times. With tougher regulatory measures everywhere and industry competition growing intense, shareholders began to worry over dividend future in the company. Fears have been widespread that the bank might pay lower dividend than in the previous years or flat dividend.
However, Mr. Gulliver allayed the fears while addressing an informal session with shareholders last week in Hong Kong. Mr. Gulliver expects the global banking and financial giant to pay a higher dividend this year regardless of the perceived industry or regulatory odds. That declaration becomes the strongest assurance ever since concerns started simmering among the shareholders.
Some analysts disagree
Even as HSBC Holdings plc (ADR) (NYSE:HSBC)’s CEO made the strong dividend declaring amid rising concerns, analysts are not ready to buy the idea. At least, some analysts believe that the future is bleak. For example, Morgan Stanley (NYSE:MS) recently issued a note that said the lender was likely to pay a dividend of $0.49 per share in 2014 and a dividend of $0.47 per share in 2015 – a downtrend. The rating firm cited slowdown in revenue growth in the emerging markets. The bank has in recent times refocused its resources in growing in emerging markets.
Expect no significant deviation
While acknowledging the Morgan Stanley report, Mr. Gulliver said his company does not see significant deviation from the dividend trend that the company has observed in the last four years. HSBC Holdings plc (ADR) (NYSE:HSBC) has boosted its dividend every other since 2009. It paid $0.48 last year.
