HSBC Holdings plc (NYSE:HSBC) has fallen more than 11% in the past month, and that means investors can earn an even higher yield than normal. It’s a great opportunity for investors to hold a stable investment that offers a recurring dividend as well.
The bank is coming off a strong earnings report earlier this month where it saw both sales and profits rise from the prior year. However, it also announced that its CEO John Flint would be leaving the company after taking on the position just 18 months earlier. In addition, the bank said that it would be cutting jobs, with as many of 2% of its employees possibly being let go.
While it will result in cost savings for the company, it also highlights concerns about the future. HSBC Chairman Mark Tucker stated that "In the increasingly complex and challenging global environment in which the Bank operates, the Board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us."
It’s a testament to how companies have to always be working to stay ahead and on top of earnings estimates and expectations. However, based on its most recent results, there does not appear to be a cause for concern at the moment, and this latest dip in price could be a great opportunity for investors to buy a solid stock at a good discount.
Trading at less than 11 times its earnings and less than its book value as well, HSBC looks like it could be a bargain dividend stock.
