The ex-dividend date is the date a company’s stock starts trading without the value of its latest announced dividend and any buyer from that day onwards is not entitled to the declared dividend. Generally, the market drives down the stock price on its ex-dividend date by the amount of the dividend. However, the market is guided by many other forces, and if the market is particularly optimistic about the stock, the price may increase.
HSBC Holdings
HSBC Holdings PLC (HSBA) is a London, United Kingdom-headquartered banking and financial services organisation. It offers a wide range of products and services, with business spread across Asia, Europe, the Middle East, North Africa, North America and Latin America.
Key Financial Highlights (Q1 FY 2019, in $m)
(Source: Company Filings)
The company’s first-quarter earnings beat expectations as its reported profit before tax increased by 30.7 per cent to $6,213 million, while adjusted profit before tax surged to $6,350 million. Reported revenue rose by 5 per cent and adjusted revenue climbed by 9 per cent, due to the disposal gains and positive market updates. Reported profit after tax was up by 31.4 per cent to $4,910 million, while basic and diluted earnings per share increased by 40 per cent to 21 cents. Returns on average tangible equity surged by 220bps to 10.6 per cent and the net interest margin decreased from 1.67 per cent to 1.59 per cent in 1Q 2019. Common equity tier 1 ratio was up by 30bps (from Dec-31-18) to 14.3 per cent in Q1 FY19.
Interim Dividend For 2019
The first interim dividend of $0.10 per ordinary share was declared by the management, which will be payable on 5 July 2019. The company set 17 May 2019 as the record date, while ex-dividend date is 16 May 2019.
Share Price Commentary
Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)
On 16th May 2019, at the time of writing (before the market closed, GMT 10:00 am), HSBA shares were trading at GBX 657.9, down by 0.81 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 749.90/GBX 596.40. The company’s stock beta was 1.00, reflecting the same volatility as compared to the benchmark index. Total outstanding market capitalisation was £134.81 billion with a dividend yield of 5.84 per cent.
GlaxoSmithKline
GlaxoSmithKline Plc (GSK) is a Brentford, United Kingdom-headquartered multinational healthcare company with a focus on a wide range of consumer healthcare, vaccines and prescription medicines products. The group focuses on development, manufacture and commercialisation of differentiated, high-quality and needed healthcare products.
Key Financial Highlights (Q1 FY 2019, in £m)
(Source: Company Filings)
The company reported that revenue grew to £7,661 million, up by 6% on an annual equivalent rate (AER) and 5% on a constant currency basis (CER). Total operating profit was £1,428 million, while adjusted operating profit was higher by 12% at AER to £2,163 million, driven by strong sales growth and phasing of R&D. Total operating margin stood at 18.6% and adjusted operating margin stood at 28.2%. While adjusted earnings per share were up 22% at AER and 18% at CER to 30.1p, earnings per share of the group stood at 16.8p, up by 50% on AER basis and by 42% on a CER basis.
Interim Dividend For 2019
The management declared the dividend for the Q1 period of 19p per share, with an expectation to maintain the dividend for 2019 at the current level of 80p per share. The dividends will be paid on 11 July 2019 while the ex-dividend date is 16 May 2019 and record date is 17 May 2019.
Share Price Commentary
Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)
On 16th May 2019, at the time of writing (before the market closed, GMT 10:30 am), GSK shares were trading at GBX 1,530, down by 0.26 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 1,648.80/GBX 1,408.80. The company’s stock beta was 1.01, reflecting the same volatility as compared to the benchmark index. Total outstanding market capitalisation was around £76.85 billion with a dividend yield of 5.22 per cent.
Tesco
Tesco PLC (TSCO) is a Welwyn Garden City, the United Kingdom-headquartered retail company and is amongst the world's largest consumer goods’ retailer. The group mainly operates as a grocery retailer but also offers insurance and retail banking services.
Key Financial Highlights (FY 2019, in £m)
(Source: Company Filings)
The company reported revenue of £63,911 million, an increase of 11.2 per cent on an actual exchange rate, due to an increase in sales of UK & ROI segment of the company. The company’s reported operating profit had increased significantly by 34 per cent based on AER basis to £2,206 million, driven by growth in the UK & ROI and Central Europe. The statutory profit before tax was increased to £1,674 million in FY2019, up by 28.8 per cent based on AER basis as compared to the last year data. The company displayed the ability to generate cash flow of £2.5 billion from retail operations in FY2019.
Dividend For 2019
The Board proposed the payment of a 4.10 pence per share final dividend, taking the full-year dividend to 5.77 pence, an increase of 92.3% year-on-year, and paying a dividend for a second successive year. After the dividend is approved by shareholders at the Annual General Meeting to be held on 13 June 2019, it will be paid on 21 June 2019, with 17 May 2019 being the record date.
Share Price Commentary
Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)
On 16th May 2019, at the time of writing (before the market closed, GMT 11:55 am), TSCO shares were trading at GBX 237.60, down by 2.50 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 266.80/GBX 187.05. The company’s stock beta was 1.17, reflecting more volatility as compared to the benchmark index. Total outstanding market capitalisation was £23.97 billion with a dividend yield of 2.37 per cent.
Royal Dutch Shell
Royal Dutch Shell PLC (RDSA) is a Hague, Netherlands-headquartered international group of energy and petrochemical company, which engages in exploring, producing, refining and marketing oil and natural gas. The group also manufactures and markets chemicals. Royal Dutch Shell PLC, which is incorporated in England and Wales, is the parent company of the Shell group.
Key Financial Highlights (Q1 FY 2019, in $m)
(Source: Company Filings)
Total revenue for the period Q1 FY19 was $85,662m, down by around 6% against the last year data of $91,114m in Q1 FY18. Income before taxation increased to $9,406m from $8,367m in Q1 2018. Income attributable to shareholders increased to $6,001m, leading to a rise in basic EPS to $0.74. Cash flow from operating activities was $8.6 billion while free cash flow was $4 billion.
Interim Dividend For 2019
An interim dividend of $0.47 was announced by the Board. The Dividend will be paid on June 24, 2019, with an ex-dividend date of May 16, 2019.
Share Price Commentary
Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)
On 16th May 2019, at the time of writing (before the market closed, GMT 12:00 pm), RDSA shares were trading at GBX 2,516.50, down by 0.13 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 2,811.38/GBX 2,209.50. The company’s stock beta was 0.84, reflecting less volatility as compared to the benchmark index. Total outstanding market capitalisation was £205.21 billion with a dividend yield of 5.80 per cent.
Intertek Group
Intertek Group PLC (ITRK) is a London, United Kingdom-headquartered company engaged in the business of providing "Total Quality Assurance Services" to products, processes and systems. The group is a leading global quality assurance provider in 1,000 locations in around 100 countries. The group provides quality assurance services round the clock, seven days a week with the industry-leading process and customer-centric approach.
Financial Highlights – FY 2018, £m)
(Source: Company Filings)
During FY18, the group’s reported revenue surged by 1.2 per cent on actual rates and 4.7 per cent on constant rates to £2,801.2m. However, on account of the 9.5 per cent (constant rate) surge in the product division, adjusted operating profit reported a growth of 6.9 per cent on constant rates to £481.8m. Adjusted operating margin improved by 40 bps on constant rates to 17.2 per cent. Adjusted diluted earnings per share expanded to 198.3 pence from 191.6 pence during the previous financial year.
For FY18, dividend per share increased by 39 per cent to 99.1 pence per share, in line with the group's new dividend policy that aims to provide 50 per cent of the group's adjusted profit attributable to the shareholders. It will be paid on 4 June 2019.
Share Price Commentary
Daily Chart as at May-16-19, before the market closed (Source: Thomson Reuters)
On 16th May 2019, at the time of writing (before the market closed, GMT 12:05 pm), ITRK shares were trading at GBX 5,098, down by 0.50 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 6,084/GBX 4,323. The company’s stock beta was 0.96, reflecting the same volatility as compared to the benchmark index. Total outstanding market capitalisation was £8.31 billion with a dividend yield of 1.93 per cent.
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