Better a dividend cut than a cash call
THOUSANDS of HSBC investors have banded together to ask the bank to pay a final dividend. If they succeed, other banks and companies may find themselves pressured into doing the same. But pressuring companies into continuing to pay dividends may not lead to optimum outcomes for investors in this environment.
HSBC was one of five large UK banks to announce earlier this month that they were revoking their dividends in order to better serve "businesses and households" affected by the novel coronavirus pandemic.
But investors in Hong Kong want the bank to pay what it had proposed, especially since the stock had already traded ex-dividend before the announcement.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Singapore-based Princeton Digital gets green loan for US$1.5 billion Asia AI hub
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Apple is working on its own AI chip for data centres: WSJ
European oil giants consider shifting their listings to the US
ExxonMobil sees Hess arbitration dragging into 2025, CEO says
Gold prices tick higher on US rate cut bets