HSBC Interim Profit Rises 23% as HK High-Dividend Bank Stocks Yield 2-6.4%

Hong Kong-listed high-dividend bank stocks fall into three categories: major international banks, local mainstream banks, and mainland Chinese banks. Based on last Friday's closing prices, these stocks offer dividend yields of approximately 2% to 6.4%, with some exceeding the annual interest rate on Hong Kong dollar time deposits. HSBC Holdings announced interim results, with reported pre-tax profit of US$19.522 billion, up 23% year on year. The bank declared a second interim dividend of US$0.10 per share and a US$1 billion share buyback, while guiding to a dividend payout ratio target of 50% for 2026 to 2028. Based on last Friday's closing price of HK$161.2, HSBC's dividend yield is approximately 3.54%, slightly above the one-year Hong Kong dollar time deposit rate. Since 2026, HSBC's share price has risen 31.7%, while the Hang Seng Index has gained only 0.1% over the same period. A board lot of HSBC is 400 shares, with an entry cost exceeding HK$64,000. Selected high-dividend bank stocks with last Friday's closing price, price change since 2026, board lot entry cost, and dividend yield are as follows: China Everbright Bank closed at HK$3.065, down 15.8% since 2026, with a board lot of 1,000 shares costing HK$3,065 and a dividend yield of 6.43%; Dah Sing Bank closed at HK$14.18, up 32.9%, with a board lot of 400 shares costing HK$5,672 and a yield of 5.64%; Bank of Communications closed at HK$7.245, up 12.3%, with a board lot of 1,000 shares costing HK$7,245 and a yield of 5.07%; China Construction Bank closed at HK$8.79, up 14.3%, with a board lot of 1,000 shares costing HK$8,790 and a yield of 4.99%; ICBC closed at HK$7.14, up 13.5%, with a board lot of 1,000 shares costing HK$7,140 and a yield of 4.91%; Bank of China closed at HK$5.23, up 17.3%, with a board lot of 1,000 shares costing HK$5,230 and a yield of 4.89%; BOC Hong Kong closed at HK$50.2, up 27.3%, with a board lot of 500 shares costing HK$25,100 and a yield of 4.23%; Bank of East Asia closed at HK$16.14, up 21.2%, with a board lot of 200 shares costing HK$3,228 and a yield of 3.78%; HSBC closed at HK$161.2, up 31.7%, with a board lot of 400 shares costing HK$64,480 and a yield of 3.54%; Standard Chartered closed at HK$232.2, up 23%, with a board lot of 50 shares costing HK$11,610 and a yield of 2.07%. The dividend yield is calculated as the full-year dividend per share divided by the latest share price, multiplied by 100%. As share prices fluctuate daily, dividend yields move accordingly. The market generally regards stocks that sustain a relatively high dividend yield, such as 5% or above, and pay dividends consistently as high-dividend stocks. Such companies are typically mature, with stable operations and relatively low share-price volatility, providing investors with regular cash returns in addition to share-price gains.