Shares in HSBC (HSBA) are trading at around 12-month lows on the back of fears of an escalating US-China trade war and a widespread sell-off of blue-chip equities. However, that belies progress in controlling operating costs, growing returns on equity and falling risk-weighted assets, all of which increases the security of the shares' forecast 6.1 per cent dividend yield.
IC TIP:
Buy
at
640p
Tip style
Income
Risk rating
High
Timescale
Long Term
Bull points
High yield
Returns improving
Loan impairments falling
Cost growth slowing
Bear points
Trade war threat
Asian expansion costs