HSBC dividends

I refer to recent comments in the media regarding HSBC's latest interim dividend. When comparing this year's gross interim dividend of 5c3 to last year's interim dividend of 19c1, one has to keep in mind that at the start of this calendar year, HSBC...

I refer to recent comments in the media regarding HSBC's latest interim dividend.

When comparing this year's gross interim dividend of 5c3 to last year's interim dividend of 19c1, one has to keep in mind that at the start of this calendar year, HSBC carried out a three for one bonus issue. Therefore, comparing like with like, this year's dividend would equate to 21c2 (based on a pre-bonus issue) and hence has a higher overall value than last year's.

This month (August 2006), HSBC will be paying out an interim dividend totalling Lm10.1 million. This compares to the Lm9.1 million paid last year and represents 75 per cent of the current year earnings.

I am certain that readers will agree that this does represent strong dividend earnings for shareholders.

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