Investors Eye Banking and Energy Stocks

Investors keep an eye on banking and energy stocks amid dividend cut fear-as HSBC struggled to produce dividend growth with weak earning results

Karen Kwok 4 May, 2016 | 4:01PM
Facebook Twitter LinkedIn

Banking stocks slumped this week following the announcement of weak results in the first three months of 2016 thanks to market turbulence and client risk aversion. 

HSBC Holdings PLC (HSBA), the biggest bank by market value traded in London, revealed yesterday that its first-quarter profits had fallen by 14%, fuelling doubts among investors the bank’s ability to generate dividend growth.

Will HSBC be the Next Large Cap to Cut Dividends?

For many investors, the main question about HSBC is whether it will be able to maintain its progressive dividend policy. Therefore following a weak start of 2016 in banking shares it comes as no surprise that HSBC came third in the most searched for stocks list among readers last month.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
88 Energy Ltd1.65 GBX-1.08
Barclays PLC197.82 GBX1.76Rating
BP PLC363.60 GBX1.65Rating
GlaxoSmithKline PLC1,399.60 GBX-0.16Rating
HSBC Holdings PLC434.20 GBX1.92Rating
Lloyds Banking Group PLC49.12 GBX1.39Rating
Royal Dutch Shell PLC B1,795.00 GBX1.93Rating
Tesco PLC267.90 GBX0.71Rating
Vodafone Group PLC110.44 GBX-0.61Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for