HSBC Announces Cash Dividend for SDR Holders: What You Need to Know

HSBC Holdings PLC has announced a significant cash dividend for holders of the HSBC HK SDR 5TO1 securities. Shareholders should take note of several key aspects that could influence share values and investment decisions.

Key Details of the Dividend Announcement

• Dividend Rate: The gross dividend rate is HKD 0.15546 per SDR, subject to a corporate action fee of HKD 0.00155, resulting in a net dividend rate of HKD 0.15391 per SDR.
• Conversion Rate: The dividend in Hong Kong Dollars will be converted to Singapore Dollars at an exchange rate of 5.84624, making the final dividend rate SGD 0.02633 per SDR.
• Important Dates:
  • Ex-Date: 07 November 2024
  • Record Date: 08 November 2024
  • Payment Date: 19 December 2024 for underlying shares and 24 December 2024 for SDR holders.
  • Book Closure Period: From 06 November 2024 to 08 November 2024

Implications for Shareholders

This announcement could have price-sensitive implications, as it affects the cash flow to investors and could influence market sentiment. The dividend is set at US Dollars 0.1, equivalent to HKD 0.777313, which may affect the trading dynamics around the key dates mentioned.

Shareholders should consider these factors in their investment strategies, particularly in relation to the timing of the record and payment dates, which might impact share liquidity and pricing.

Conclusion

The declaration of a cash dividend by HSBC Holdings PLC is a noteworthy event for SDR holders, providing a potential boost to investor returns. Shareholders are encouraged to stay informed about the dividend’s implications on their portfolios.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor.

View HSBC HK SDR 5to1 Historical chart here