London-headquartered HSBC has flagged a potential special dividend linked to the sale of its Canada business, after delivering the largest annual dividend in four years in 2022.
HSBC is considering a special dividend of $0.21 per share from the sale of its Canada business, according to a statement. In November 2022, the British lender announced an agreement to sell its Canada business to RBC.
The sale is expected to be completed in late 2023 and any additional proceeds following the payout would be used for organic growth opportunities and potential share buybacks.
Four-Year High
Following the fourth quarter, HSBC’s approved a second interim dividend of $0.23 per share, bringing the bank’s annual dividend for 2022 to $0.32 per share – a four-year high.
After delivering 30 cents per share in 2019, HSBC suspended dividends in 2020 at the request of UK authorities which angered many small shareholders in Hong Kong. It delivered 15 cents for the full year of 2020 and 25 cents for 2021.
