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Covid-19: HSBC / SC - Dividends & Results

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  1. #101

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    Quote Originally Posted by Paxbritannia:
    What's their reasoning - why is Hang Seng inherently better managed / profitable than HSBC?
    It has a more focused business - with much less geographical spread and fewer business divisions. It's not about being better managed, but these factors arguably make it less risky (in their opinion).
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  2. #102

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    Quote Originally Posted by traineeinvestor:
    It has a more focused business - with much less geographical spread and fewer business divisions. It's not about being better managed, but these factors arguably make it less risky (in their opinion).
    And given the current sentiment ( Read https://www.ejinsight.com/eji/articl...shares?noembed) - it is under local regulation.

    The Lychee blog reminded me of this article, which we have discussed earlier. Ugh... another person f'ed over by HSBC (and no, I'm not frothing or whatever. Just saying.)

    As of last month, he was able to accumulate 40,000 shares, with a market value of around HK$2.6 million.

    That means he could receive an annual dividend payment of HK$160,000, based on the bank’s latest full-year dividend payout of 51 US cents.

    Given his simple lifestyle (sleeping, sports and video games are his favorite pastimes), he reckons the dividend income from his HSBC shares will be enough to sustain him for the rest of his life.
    https://www.ejinsight.com/eji/articl...00-hsbc-shares
    traineeinvestor likes this.

  3. #103

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    Quote Originally Posted by shri:
    And given the current sentiment ( Read https://www.ejinsight.com/eji/articl...shares?noembed) - it is under local regulation.

    The Lychee blog reminded me of this article, which we have discussed earlier. Ugh... another person f'ed over by HSBC (and no, I'm not frothing or whatever. Just saying.)



    https://www.ejinsight.com/eji/articl...00-hsbc-shares
    I feel for the guy but I'd say his decision to roll everything on 5 Red at the great roulette table in Exchange Square was a bigger factor than being on the wrong end of the economic and financial cycle - markets go up and down ... sometimes a lot.
    shri, jrkob and tf19 like this.

  4. #104

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    Seen in a Bloomberg newsletter.

    Last month HSBC shocked investors by scrapping its dividend. For the Hong Kong Medical Association, a public health group instrumental in the fight against the coronavirus and a long-time investor in the city’s biggest bank, that meant it would lose 7% of its annual spending budget.

    With more than half its stock portfolio invested in the bank, the group is now pressured to trim spending, adding to strains in a city hurt by the virus outbreak and months of anti-government protests. The association is among investors in Hong Kong hurt by HSBC’s unprecedented decision to skip payouts at the behest of U.K. regulators.

    Particularly galling for some is that HSBC draws most of its profits from the Asian city, which isn’t restricting dividends, and where local retail investors — who own a third of shares — have propped it up in past downturns.

    The task now is for Chief Executive Officer Noel Quinn to boost the performance of a lender whose shares have trailed the Hang Seng Index in five of the past six years, once dividends are excluded. This at a time of mounting stresses while the virus outbreak disrupts Quinn’s plan to squeeze greater returns from the bank by cutting staff, exiting unprofitable units elsewhere and pushing more firmly into mainland China.


    HSBC’s Dividend Shock Leaves Deep Marks in Hong Kong

    https://www.bloomberg.com/news/artic...s-in-hong-kong
    Last edited by shri; 22-04-2020 at 07:42 AM.

  5. #105

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    Also worth reading this.. If nothing else a contrasting approach by DBS. One might say it's a more Asian and societal approach than say the British one...

    https://www.euromoney.com/article/b1...-threat-to-all


  6. #106

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    Quote Originally Posted by shri:
    Seen in a Bloomberg newsletter.




    HSBC’s Dividend Shock Leaves Deep Marks in Hong Kong

    https://www.bloomberg.com/news/artic...s-in-hong-kong
    Again why investors should have a well diversified portfolio, rather than putting all your eggs in one basket.
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  7. #107

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    Quote Originally Posted by pin:
    Again why investors should have a well diversified portfolio, rather than putting all your eggs in one basket.
    'In God We Trust'

  8. #108

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    Quote Originally Posted by shri:
    Seen in a Bloomberg newsletter.




    HSBC’s Dividend Shock Leaves Deep Marks in Hong Kong

    https://www.bloomberg.com/news/artic...s-in-hong-kong
    WTF were they thinking putting half their funds in a single share?
    GentleGeorge likes this.

  9. #109

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    Quote Originally Posted by traineeinvestor:
    WTF were they thinking putting half their funds in a single share?
    You'd be surprised with the number of older folks who do this and as late as a couple of years ago were still getting this advice from professionals - "Just put everything into HSBC".

  10. #110

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    Quote Originally Posted by shri:
    You'd be surprised with the number of older folks who do this and as late as a couple of years ago were still getting this advice from professionals - "Just put everything into HSBC".
    And yet again a perfect example of why yesterday's star performing / solid stock won't be tomorrow's star performing / solid stock. This goes back to why having a well diversified portfolio is the best option for 99% of people.

    Also were these so call professionals the same ones telling them to buy high fee annuities and long term universal life insurance policies with "guaranteed" payments?

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