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
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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 Morningstar.co.uk readers last month.

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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
88 Energy Ltd1.30 GBP0.00
Barclays PLC180.00 GBP0.00Rating
BP PLC304.60 GBP0.00Rating
GlaxoSmithKline PLC1,330.20 GBP0.00Rating
HSBC Holdings PLC440.00 GBP0.00Rating
Lloyds Banking Group PLC46.68 GBP0.00Rating
Royal Dutch Shell PLC B1,313.80 GBP0.00Rating
Tesco PLC223.70 GBP0.00Rating
Vodafone Group PLC138.90 GBP0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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